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Philippine factory output continues to expand in February —IHS Markit


The Philippine manufacturing sector recorded its second month of expansion in February as manufacturers rebuilt their inventory in anticipation of further gains in demand, results of the monthly survey conducted by IHS Markit revealed.

The country's Purchasing Managers' Index (PMI) was unchanged at 52.5 in February from January, posting above the 50.0 threshold that separates expansion from contraction.

"Latest PMI data shows further progress across the Filipino manufacturing sector, with another solid overall expansion recorded during February," IHS Markit economist Shreeya Patel said in a commentary.

Output and new order volumes both rose moderately in February with firms mentioning the resumption of business at client firms, with the government anticipated to ease quarantine restrictions moving forward.

A council of Metro Manila mayors in February recommended shifting to a modified general community quarantine (MGCQ) in March, but President Rodrigo Duterte rejected this citing the delayed shipment of the COVID-19 vaccines.

The same IHS Markit survey also found that the average cost burdens rose at the quickest rate in over two years due to the adverse effect of the pandemic on transportation and material prices. Firms were reported to have passed on part of the burden to clients by increasing charges.

"COVID-19 continues to pose a large threat with material shortages and transportation delays a result of pandemic restrictions. Exports were also hard-hit with overseas demand heavily subdued during February," said Patel.

"For now, controlling the COVID-19 pandemic remains at the heart of the Philippines' agenda and whilst vaccines have been secured, delivery delays have severely hindered efforts to vaccinate the nation," she added.

The Philippines is the last country in the ASEAN region to secure vaccines. Over the weekend it received an initial 600,000 doses of COVID-19 vaccines as a donation from China, and inoculation started on Monday, March 1. —KBK, GMA News

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