The S&P Global Philippines Manufacturing PMI—a composite indicator of manufacturing performance—rose to 53.7 in September 2024 from 51.2 in August. It was the highest since mid-2022, and indicated a solid improvement in the health of the Philippines manufacturing sector.
“The Filipino manufacturing sector showed a significant improvement at the end of the third quarter, as indicated by the latest PMI data. Overall new orders increased at a much faster pace, despite demand for Filipino goods taking dropping notably in international markets. Consequently, manufacturers boosted production at a strong rate,” said Maryam Baluch, economist at S&P Global Market Intelligence.
A robust expansion in new orders drove a matching uptick in production volumes, which in turn, supported hiring and greater purchasing activity. Stronger performance of the sector also boosted confidence in the year-ahead outlook for output which strengthened to a four-month high, S&P Global said.
It said while cost pressures ticked up, the rates of increase in input prices and output charges were weaker than their respective long-run averages. However, goods producers also indicated growing challenges during the latest survey period, amid sharply deteriorating supplier performance and a notable downtick in new export orders.
