The Philippine manufacturing sector recorded its biggest gain in over four years in April to indicate signs of recovery from the COVID-19 pandemic, according to results of the latest survey by S&P Global.
The S&P Global Philippines Manufacturing PMI grew to 54.3 in April from 53.2 in March. This is the third straight month of expansion, and the best performance since November 2017.
“Looser pandemic restrictions led to a stronger improvement in operating conditions across the manufacturing sector in the Philippines at the start of the second quarter,” S&P global economist Maryam Baluch said in an emailed statement.
Output and new orders grew for the third straight month, attributed to the easing of pandemic restrictions which drove demand and production schedules higher.
Buying activity also recorded an increase, marking its fastest jump in over three years.
Firms also recorded higher inventories of raw materials and semi-furnished items, with the accumulation in stocks recording the fastest growth since January 2016.
“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,” said Baluch.
“Furthermore, the rate of input cost inflation eased only slightly from the record-high seen in March, leading to another sharp increase in selling prices,” she continued.
Business confidence also inched up to a four-month high, as looser COVID-19 restrictions indicate a possible increase in demand conditions and higher 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 said.
Official government data on April manufacturing is scheduled to be released on June 9, 2022.—AOL, GMA News