Phl manufacturing sector improves in April — index

The health of the Filipino manufacturing sector further improved in April on the back of more orders and more production growth in the country, the S&P Global Philippines Manufacturing Purchasing Managers' Index (PMI) said Thursday.

In its most recent report, S&P Global said that the country's manufacturing PMI, which shows how well the sector is doing, rose from a low of 50.2 in March to 52.2 in April.

A reading above 50.0 means the volume is improving, while a reading below the bar means the volume is shrinking.

"Building on the growth seen in the first quarter of the year, the Filipino manufacturing sector showcased further gains in April. A quicker rate of expansion was observed for new orders, which in turn triggered a renewed and solid rise in production," S&P Global Market Intelligence economist Maryam Baluch said in a commentary.

"Additionally, business from overseas markets also expanded at a stronger rate," Baluch added.

According to S&P Global, figures on prices showed that inflationary pressures had been low in the past.

It added that a weaker-than-average rate of increase in cost burdens meant that Filipino goods producers were able to largely keep their charges unchanged from those seen in March.

New orders further climbed last month

S&P Global said new orders climbed further in April, the quickest recovery since November of the previous year.

Conditions on the export market also improved in April, with new export orders climbing at the fastest rate in five months and for the third month in a row.

As fresh jobs came in, Filipino manufacturers' output of goods grew again.

The rate of growth was also strong overall and the most noticeable in four months.

"With production requirements rising, hiring and purchasing activity remained in growth territory. Moreover, stock building became more widespread in anticipation of greater future output," Baluch said.

"Meanwhile, price data indicated a relatively subdued inflationary environment, which also is likely to help support growth in the coming months as firms were able to price more competitively," Baluch added.