Philippines: Manufacturing PMI inches down in July
The S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) dipped to 51.2 in July from 51.3 in June. As a result, the index remained above the 50.0 no-change threshold, signaling a marginally softer improvement in manufacturing-sector operating conditions compared to the previous month.
July saw new orders rise at a faster rate than the previous month’s five-month low, which encouraged firms to increase their purchasing activity and hire new staff for the first time in three months. Inventory accumulation was also noted, as companies aimed to build their stocks in response to increased demand. However, production growth eased, and supplier delivery times increased due to port congestion. Additionally, demand from overseas markets showed signs of cooling.
On the price front, cost burdens rose only modestly despite input price inflation reaching a five-month high. The pace of increase in charges to customers slowed to a three-month low. Regarding sentiment, manufacturing companies in the Philippines remained optimistic about future production. However, there was a slight decrease in their confidence level, with some firms expressing caution about the demand environment.