2 weeks Ago By N/A (Derco Rosal)
The Philippine manufacturing sector closed 2024 on a strong note, driven by further improvements in demand and a moderation in inflationary pressures, the S&P Global reported. Maryam Baluch, Economist at S&P Global Market Intelligence, said that the sector posted sharp and substantial increases in new orders and output in December, with firms expanding their purchasing activity to meet production requirements. The headline S&P Global Philippines manufacturing purchasing managers' index (PMI), a composite single-figure indicator of factory performance, posted in expansion territory (above the neutral 50.
0 mark) for the 16th consecutive month in December. The latest reading of 54.3, up from 53.
8 in the previous survey period, signaled a strong improvement in the health of the Filipino manufacturing sector and was the joint-strongest since November 2017 (alongside that seen in April 2022). "December highlighted a moderation in inflationary pressures, marking a shift from the spike observed in November," Baluch added. "In fact, cost burdens and output charges rose at historically muted rates.
" The two largest components of the PMI calculation (the Output Index and New Orders Index) positively influenced the headline figure in December, with sharp expansions in both new orders and output being reported, supported by anecdotal evidence of robust underlying demand trends, product diversification, and new client acquisitions. Additionally, there was a renewed rise in demand from international markets, marking the first increase in new export orders in five months. Growth in production requirements spurred manufacturers to raise their purchasing activity, with input buying rising sharply and at a rate that was the strongest in nearly two years.
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