PHL manufacturing index at 6-month high in July —IHS Markit

The Philippine manufacturing sector continued to recover in July to register best performance in six months, results of the IHS Markit monthly survey showed.

The IHS Markit Philippines Manufacturing Purchasing Managers’ Index (PMI) improved to 52.1 in July from 51.3 in June—the best reading in four months back then.

The PMI is a composite indicator of the manufacturing sector’s performance, with 50.0 as the threshold. A reading above 50 indicates growth and below 50 is a contraction.

The July PMI is now the best reading in six months, since 52.3 in January this year.

“Filipino manufacturers saw a stronger improvement in business conditions in July, as sales growth reached a six-month high and enabled a solid increase in production,” IHS Markit said in an explanatory note.

“Employment and input purchases were also up from June. At the same time, selling prices rose only modestly as cost pressures remained relatively soft,” it added.

Companies noted a higher demand for manufactured goods in July, mostly domestic, as a number of firms reported a lack of orders from foreign clients, according to HIS.

“New order growth was up notably in July, easing some worries in recent months that the manufacturing environment was facing a slowdown,” said David Owen, economist at IHS Markit.

“Output meanwhile increased at a solid rate, albeit one that was weaker-than-average for the Filipino goods-producing sector,” he said.

The government figures on manufacturing for July, or the results of the Monthly Integrated Survey of Selected Industries (MISSI), will be released on September 5. —VDS, GMA News