Philippines factory activity falls to lowest level in over four years in November
PHILIPPINE FACTORY activity deteriorated in November, posting the sharpest downturn in more than four years as manufacturers saw drastic decline in output and new orders, according to S&P Global.
The Philippines Manufacturing Purchasing Managers’ Index (PMI) slumped to 47.4 in November, a reversal of the 50.1 in October.
S&P Global said this was the “strongest deterioration in operating conditions across the Filipino manufacturing sector since August 2021.”
The headline PMI is a composite indicator of manufacturing performance. A PMI reading below 50 shows a deterioration in operating conditions, while a reading above 50 denotes better operating conditions from the preceding month.
“Manufacturing conditions in the Philippines deteriorated sharply in November, according to the latest S&P Global PMI survey. Output and new orders contracted at their fastest rates since August 2021, driven by weak customer demand. Exports, purchasing and employment also declined, reflecting broader challenges in the sector,” Trevor Balchin, Economics Director at S&P Global Market Intelligence, said.
S&P Global said new orders fell for a third straight month, and the fastest rate since August 2021. This was attributed to “weak customer demand and reduced requirements due to product life cycle changes.”
“There were signs of promise, however, as manufacturers expressed increased optimism for the next 12 months, anticipating growth due to new projects and improved economic conditions,” Mr. Balchin said. — Aubrey Rose A. Inosante
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