Philippines’ factory activity slows in June

THE SECOND QUARTER closed with softer manufacturing activity as higher input costs continue to mount, but was a “solid improvement” from the previous three months, according to an IHS Markit survey conducted for Nikkei.
The Nikkei Philippines Purchasing Managers’ Index (PMI) slid to 52.9 in June from 53.7 in May, placing third among select Association of Southeast Asian Nations (ASEAN) member-states, down from second in the previous month, but was still above the regional index of a 51 PMI — down from 51.4 in May.
Nikkei noted that there were slower increases in output and new order growth, while employment remained steady amid high inflation.
“Manufacturing conditions in the Philippines improved further at the end of the second quarter, buoyed by increases in both output and new orders. Higher input inventories and stretched supply chains also boosted the headline PMI,” the report read.
“However, greater manufacturing activity failed to test firms’ operating capacity as reflected by lower backlogs which, in turn, weighed on hiring. Employment levels were broadly steady. Inflation meanwhile remained elevated, as did business confidence,” it added. — Elijah Joseph C. Tubayan