It was announced on August 2, 2021, that the Philippines and Singapore were the only…
The manufacturing index in April was at its highest level in almost four years.
MANILA, Philippines — The S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) stated Monday that further loosening of pandemic restrictions propelled the country’s manufacturing performance to its highest level in 53 months in April 2022.
The Philippine Producers’ PMI increased to 54.3 in April from 53.2 in March.
Last month’s manufacturing performance was the best since November 2017, indicating a significant improvement in overall operating conditions.
According to S&P Global, the improvement in manufacturing conditions was aided by increasing output and new orders, which have been rising for three months in a row.
“As client demand grew stronger, output and new orders increased at rates not seen in the previous three years.” Furthermore, optimistic projections have resulted in a solid increase in input stockpiles, indicating that the sector is on the mend,” said S&P Global economist Maryam Baluch.
Baluch, on the other hand, claims that the war between Russia and Ukraine is driving up shipping costs and decreasing worldwide demand.
“Although output growth improved in April, global headwinds, notably from (the) Russia-Ukraine war and Chinese lockdowns, put additional strain on supply chains,” she noted.
Meanwhile, manufacturers in the Philippines have reversed a 25-month record of employment losses, with April data showing a stable workforce.
Manufacturers are hopeful for the next 12 months because of improved economic circumstances, stronger demand conditions, and rising output in the next months, which has boosted business optimism to a four-month high in April.
“While improving client demand has aided the recovery thus far, it will be interesting to observe how growth momentum is maintained in the face of persistent supply chain disruption and rapidly rising costs,” Baluch noted.