{"id":18577,"date":"2024-05-03T03:02:05","date_gmt":"2024-05-03T03:02:05","guid":{"rendered":"https:\/\/energybuzz.ph\/staging\/6915\/manufacturing-expands-at-fastest-clip-in-5-months\/"},"modified":"2024-05-03T03:02:05","modified_gmt":"2024-05-03T03:02:05","slug":"manufacturing-expands-at-fastest-clip-in-5-months","status":"publish","type":"post","link":"https:\/\/energybuzz.ph\/staging\/6915\/manufacturing-expands-at-fastest-clip-in-5-months\/","title":{"rendered":"Manufacturing expands at fastest clip in 5 months"},"content":{"rendered":"<div>\n<p class=\"p2\">By <b>Beatriz Marie D. Cruz, <\/b><i>Reporter <\/i><\/p>\n<p class=\"p5\"><span class=\"s2\">PHILIPPINE MANUFACTURING<\/span><span class=\"s1\"> activity in April expanded at its fastest pace in <\/span><span class=\"s3\">f<\/span><span class=\"s1\">ive months amid an increase in output and new orders, S&amp;P Global said on Thursday. <\/span><\/p>\n<p class=\"p6\">The S&amp;P Global Philippines Manufacturing Purchasing Managers\u2019 Index (PMI) rose to 52.2 in April from 50.9 in March, marking the strongest improvement in <span class=\"s3\">f<\/span>ive months or since the 52.7 reading in November 2023.<\/p>\n<p class=\"p6\"><span class=\"s4\">A PMI reading above 50 means improved operating conditions from the previous month, while a reading below 50 shows deterioration. <\/span><\/p>\n<p class=\"p6\"><span class=\"s1\"><a title=\"Manufacturing Purchasing Managers\u2019 Index (PMI) of select ASEAN economies, April 2024\" href=\"https:\/\/www.flickr.com\/photos\/142608056@N02\/53692576787\/in\/photostream\/\" data-flickr-embed=\"true\"><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"alignleft\" src=\"https:\/\/energybuzz.ph\/staging\/6915\/wp-content\/uploads\/2024\/05\/53692576787_e51cbd939e_o.jpg\" alt=\"Manufacturing Purchasing Managers\u2019 Index (PMI) of select ASEAN economies, April 2024\" width=\"300\" height=\"3693\"><\/a><script async src=\"\/\/embedr.flickr.com\/assets\/client-code.js\" charset=\"utf-8\"><\/script>The Philippines\u2019 PMI reading remained the second fastest among six Association of Southeast Asian Nations (ASEAN) member countries in April, just behind Indonesia (52.9) and ahead of Vietnam (50.3).<\/span><\/p>\n<p class=\"p6\">Myanmar (49.9), Malaysia (49), and Thailand (48.6) all saw a contraction in manufacturing activity in April.<\/p>\n<p class=\"p6\"><span class=\"s1\">The Philippines\u2019 PMI reading was above the ASEAN average of 51.<\/span><\/p>\n<p class=\"p6\"><span class=\"s1\">\u201cBuilding on growth seen in the <\/span><span class=\"s5\">f<\/span><span class=\"s1\">irst quarter of the year, the Filipino manufacturing sector showcased further gains in April,\u201d Maryam Baluch, economist at S&amp;P Global Market Intelligence said in the report. \u201cA quicker rate of expansion was observed for new orders, which in turn triggered a renewed and solid rise in production.\u201d <\/span><\/p>\n<p class=\"p6\"><span class=\"s1\">According to S&amp;P Global, new orders in April increased at the fastest pace since November 2023. <\/span><\/p>\n<p class=\"p6\">\u201cExport market conditions also improved in April, with new export orders rising for the third month running and at the quickest pace in <span class=\"s3\">f<\/span>ive months,\u201d it said.<\/p>\n<p class=\"p6\">S&amp;P Global said the rate of growth in goods production was \u201csolid\u201d and the \u201cmost pronounced\u201d in four months<\/p>\n<p class=\"p6\">\u201cWith production requirements rising, hiring and purchasing activity remained in growth territory. Moreover, stockbuilding became more widespread in anticipation of greater future output,\u201d Ms. Baluch said.<\/p>\n<p class=\"p6\">Manufacturers ramped up purchasing in April, the fastest pace in nine months, due to improved demand and increased production requirements.<\/p>\n<p class=\"p6\">\u201cStronger rates of stockpiling were also recorded at Filipino manufacturing firms, with pre- and post-production stocks accumulated at fastest paces in 12 and 17 months,\u201d it said.<\/p>\n<p class=\"p6\">S&amp;P Global noted that manufacturing jobs increased for a third month in a row in April, although easing from March.<\/p>\n<p class=\"p6\">\u201cHowever, the accelerated growth in new orders meant that pressure on capacity had intensified, with some firms struggling to complete work in hand. As a result, the latest rate of backlog depletion was marginal overall and the weakest since August 2023,\u201d it said.<\/p>\n<p class=\"p6\">S&amp;P noted that a slower-than-average increase in cost burden meant most manufacturers kept their charges unchanged month on month.<\/p>\n<p class=\"p6\">\u201cPrices data indicated a relatively subdued inflationary environment, which also is likely to help support growth in the coming months as firms were able to price more competitively,\u201d Ms. Baluch said.<\/p>\n<p class=\"p6\">A <i>BusinessWorld<\/i> poll of 16 analysts showed in<span class=\"s3\">f<\/span>lation may have accelerated to 4.1% in April from 3.7% in March.<\/p>\n<p class=\"p6\"><span class=\"s4\">Manufacturers were \u201clargely positive\u201d in the next 12 months, with around a quarter saying there will be growth in production. However, the degree of confidence dropped to a four-year low, S&amp;P Global said.<\/span><\/p>\n<p class=\"p6\">The PMI measures a country\u2019s manufacturing conditions based on the weighted average of <span class=\"s3\">f<\/span>ive indices: new orders (30%), output (25%), employment (20%), suppliers\u2019 delivery times (15%) and stocks of purchases (10%).<\/p>\n<p class=\"p6\"><span class=\"s4\">\u201c(PMI) seems to have been unaffected by inflation, with cost of production as measured by the Producer Price Index for manufacturing, having fallen by 1% year on year in March, marking the third consecutive month of decline, although it saw a slight month-on-month increase of 0.3%,\u201d <\/span><span class=\"s1\">Security Bank Corp. Chief Economist Rob<\/span><span class=\"s4\">ert Dan J. Roces said in a Viber message. <\/span><\/p>\n<p class=\"p6\"><span class=\"s1\">If the PMI reading continues to improve, Mr. Roces said he expects an upside to gross domestic product growth.<\/span><\/p>\n<p class=\"p6\">Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said stronger demand in the electronics and food processing sectors contributed to the uptick in factory activity.<\/p>\n<p class=\"p6\">\u201cS&amp;P\u2019s survey is consistent with the recovery in Asian electronics exports, which happens to be one of the major manufacturing subsectors in the Philippines,\u201d he said in a Viber message.<\/p>\n<p class=\"p6\"><span class=\"s4\">\u201cIt is also possible that the local food processing industry, despite higher input costs, continues to thrive given the strength of overall domestic demand, driven largely by favorable demographics and declining unemployment rates,\u201d he added.<\/span><\/p>\n<p class=\"p6\">Oikonomia Advisory &amp; Research, Inc. President and Chief Economist John Paolo R. Rivera said in a Viber chat that slower in<span class=\"s3\">f<\/span>lation may have helped boost factory activity in April.<\/p>\n<p class=\"p6\">Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the uptick in factory activity may have been due to the higher number of working days in April versus March.<\/p>\n<p class=\"p6\"><span class=\"s4\">\u201cThis is a sign of resilience despite and defying the still relatively higher interest rates that increased financing costs\/borrowing costs for manufacturers since 2022 due to higher prices\/in<\/span><span class=\"s3\">f<\/span><span class=\"s4\">lation,\u201d Mr. Ricafort said in an e-mail.<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<div>PHILIPPINE MANUFACTURING activity in April expanded at its fastest pace in five months amid an increase in output and new orders, S&amp;P Global said on Thursday.<\/div>\n","protected":false},"author":1,"featured_media":18578,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[1],"tags":[14644,17682,11579,2209,14780,8227],"class_list":["post-18577","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-bworldonline","tag-clip","tag-expands","tag-fastest","tag-manufacturing","tag-months"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - 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