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April brought solid improvements in the Philippine manufacturing sector, with boosts in new orders and output, according to S&P Global.

Philippine Manufacturing Sector Expands In April

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The country’s manufacturing sector recorded solid improvements in April as new orders and output increased, S&P Global said.

In a report on Friday, S&P Global said the Philippine manufacturing purchasing managers index (PMI), an indicator of manufacturing performance, posted 53 in April, signaling a renewed improvement in the health of the country’s manufacturing sector.

This was up from March’s 49.4 reading, which indicated a modest deterioration in operating conditions.

A PMI lower than 50 means a deterioration of manufacturing activities while above the neutral score means improvement.

“The Filipino manufacturing commenced the second quarter of the year on a solid note, experiencing renewed growth in output and new orders, alongside an increased level of purchasing activity,” said S&P Global Market Economist Maryam Baluch.

S&P Global said the increase in output and new orders were driven by new client acquisitions and the upcoming elections.

Employment levels, meanwhile, remained unchanged for the second straight month in April.

PMI data showed that firms managed their workloads effectively, evidenced by another fractional drop in outstanding work levels.

In terms of prices, S&P Global said inflationary pressures were only modest.

“Encouragingly, inflationary pressures also remained contained and historically subdued,” Baluch said.

S&P Global, however, said that while firms remained hopeful that output would rise over the coming 12 months, the level of confidence fell to the second-lowest on record.

Firms disclosed that the temporary boost from the upcoming election would wane, leading to a return to normal production levels in the coming year. (PNA)