The further easing of pandemic restrictions pushed the country’s manufacturing performance in April 2022 to its peak in 53 months, S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) reported yesterday.
Philippine producers’ PMI hit 54.3 in April this year from a score of 53.2 in March.
Manufacturing performance last month was the highest since November 2017, reflecting a solid improvement in overall operating conditions.
S&P Global said the improvement in manufacturing conditions was supported by increased output and new orders, up for three straight months.
“As client demand strengthened, both output and new orders expanded at rates not seen over three years. Furthermore, upbeat forecasts have resulted in a solid increase in stocks of inputs, with the sector moving towards recovery,” S&P Global economist Maryam Baluch said.
On the other hand, Baluch said the conflict between Russia and Ukraine is driving higher shipping costs and slowing down demand from international markets.
“Although output growth picked up in April, global headwinds, notably from (the) Russia-Ukraine war and lockdowns in China, led to further pressure on supply chains,” she added.
Meanwhile, Philippine-based manufacturers ended a 25-month period of job shedding as April data showed a stabilized number of workforce.
Business confidence is also at its four-month high in April as manufacturers are optimistic for the next 12 months due to improvement in conditions related to the pandemic, stronger demand conditions, and rising output in the coming months.
“While strengthening client demand has been able to support the recovery so far, it will be important to see how growth momentum is sustained amid ongoing supply chain disruption and sharply rising costs,” Baluch added.*PNA
