FACTORY ACTIVITY in the Philippines improved last month despite higher input costs and selling prices due to the tax reform law that took effect on Jan. 1, according to an IHS Markit survey conducted for Nikkei.

The Philippines’ Nikkei Manufacturing Purchasing Managers’ Index (PMI) grew to 51.5 in March from 50.8 in February on output, new order, and export growth.

The first quarter average however was the lowest since the survey started in 2016.

The Philippines placed third among select Association of Southeast Asian Nations member-states, an improvement from placing fifth in February, but was overtaken by Myanmar and Vietnam’s 53.7 and 51.6, respectively.

“Growth in the Philippines manufacturing sector accelerated into the end of the first quarter. Faster rises in output and new business boosted the headline PMI, while a slower fall in employment was seen,” the report read.

“The stronger upturn saw business expectations improve, with optimism at an eight-month high. This encouraged firms to scale up purchasing activity and build-up inventories,” it added.

The report also noted that the new excise taxes “continued to push up inflationary pressures during March,” that led input costs and selling prices to climb “the highest in the survey history.” — Elijah Joseph C. Tubayan

RELATED ARTICLESMORE FROM AUTHOR