The S&P Global Manufacturing Purchasing Managers’ Index (PMI) reported Thursday that Philippine factories recorded growth in July 2024.
Philippine manufacturing PMI last month stood at 51.2, slightly lower from the 51.3 score in June this year.
As long as the score is above 50, the sector is considered to have improved, while scores below 50 is considered a deterioration.
The improvement in the local manufacturing performance was driven by the positive demand trend, a renewed rise in hiring activities, and the muted inflationary environment.
“The second half of the year started modestly, with the Filipino manufacturing sector signaling further upticks in output and new orders,” S&P Global Market Intelligence economist Maryam Baluch said.
S&P said demand trends continued to increase across the manufacturing sector, with new orders recording a growth rate faster than June’s five-month low.
On the other hand, demand from overseas market had moderated last month.
“Though in both cases, the rates of increase were weaker than their respective long-run averages, thereby indicating relatively subdued growth across the sector,” Baluch added.
With the sustained rise in production, factories’ purchasing activities also improved in July.
Factories, likewise, registered growth in employment since April.
“Nonetheless, a historically muted inflationary environment, as indicated by the PMI price gauges, could open the door to policy rate cuts. Easing financial conditions should help solidify and strengthen growth in the coming months,” Baluch said.
Meanwhile, manufacturing companies remained optimistic in the next 12 months. (PNA)
