April factories output surge
A PMI lower than 50 indicates deterioration of manufacturing activities, while a PMI above the neutral score means improvement.
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A PMI lower than 50 indicates deterioration of manufacturing activities, while a PMI above the neutral score means improvement.
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The manufacturing sector posted solid improvements in April as new orders and output increased, S&P Global said.
S&P Global said in a report yesterday that the manufacturing purchasing managers index (PMI), an indicator of manufacturing performance, posted a score of 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 indicates deterioration of manufacturing activities, while a PMI 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 increased purchasing activity,” said S&P Global Market economist Maryam Baluch.
S&P Global said new client acquisitions and the upcoming elections drove the increase in output and new orders.
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, confidence fell to the second-lowest level 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.
