{"id":19058,"date":"2024-06-04T03:17:51","date_gmt":"2024-06-04T03:17:51","guid":{"rendered":"https:\/\/energybuzz.ph\/staging\/6915\/may-manufacturing-growth-slows\/"},"modified":"2024-06-04T03:17:51","modified_gmt":"2024-06-04T03:17:51","slug":"may-manufacturing-growth-slows","status":"publish","type":"post","link":"https:\/\/energybuzz.ph\/staging\/6915\/may-manufacturing-growth-slows\/","title":{"rendered":"May manufacturing growth slows"},"content":{"rendered":"
\n

By Beatriz Marie D. Cruz, <\/b>Reporter<\/i><\/p>\n

FACTORY ACTIVITY in the Philippines expanded at a slower pace in May as employment fell for the f<\/span>irst time in f<\/span>ive months, S&P Global said on Monday.<\/p>\n

The S&P Global Philippines Manufacturing Purchasing Managers\u2019 Index (PMI) stood at 51.9, slightly down from 52.2 in April, indicating \u201cmodest improvement\u201d in factory activity.<\/p>\n

A PMI reading above 50 signifies improved operating conditions from the previous month, while a reading below 50 shows the opposite.<\/p>\n

\u201cThe [Philippine] manufacturing sector continued to report further gains midway through the second quarter, with growth sustained in new <\/span>orders and output,\u201d Maryam Baluch, an economist at S&P Global Market <\/span>Intelligence, said in the report. <\/span><\/p>\n

\u201cHowever, firms struggled to maintain their workforce numbers with job shedding noted for the first time in five months.\u201d <\/span><\/p>\n

The Philippines\u2019 PMI reading remained the second-fastest among four Association of Southeast Asian Nations member countries in May, behind Indonesia and Myanmar (52.1) and ahead of Vietnam (50.3).<\/p>\n

As of publishing time, no PMI data for Thailand and Malaysia were available.<\/p>\n

For the Philippines, S&P Global noted total sales growth continued in May, although this \u201ceased fractionally\u201d from April.<\/p>\n

\u201cNonetheless, a further improvement in underlying demand trends and an expanding customer base helped stretch the current run of increase to nine consecutive months,\u201d it said.<\/p>\n

New export orders increased for a fourth straight month and \u201cat a pace most pronounced since December 2016,\u201d S&P Global said.<\/p>\n

\u201cGrowth in new sales from abroad was widely attributed to improved demand trends in key export markets and new client wins,\u201d it added.<\/p>\n

Strong growth sales pushed factories to increase their production, S&P Global said. Factory output grew at the fastest pace in the year to date.<\/p>\n

Even as production grew, S&P Global noted that manufacturing jobs dropped for the first time since December 2023.<\/p>\n

\u201cThe rate of decrease was the fastest in nine months, with f<\/span>irms largely attributing this to voluntary leavers,\u201d it said. \u201cBacklogs, though, continued to fall, indicating that many companies were equipped to handle the sustained rise in demand.\u201d<\/p>\n

Meanwhile, manufacturers continued to increase purchases of inputs for a sixth straight month. Pre-production inventories also expanded at the fastest pace in 13 months.<\/p>\n

\u201cStocks of f<\/span>inished goods were also raised in May, though the rate of growth was the weakest in the current three-month sequence of expansion,\u201d S&P Global added.<\/p>\n

Input prices dipped for the f<\/span>irst time since April 2020 as some companies said they switched to \u201cmore competitively priced\u201d suppliers.<\/p>\n

\u201cHowever, charges continued to rise, indicating that f<\/span>irms wished to maintain and build their margins,\u201d Ms. Baluch said.<\/p>\n

S&P Global said Filipino manufacturers were hopeful of improved demand and plan to expand operations and launch new products. It noted that expectations for the 12-month outlook for output rose for the f<\/span>irst time in f<\/span>ive months.<\/p>\n

\u201cSubdued inflationary pressures and a further improvement in the demand picture indicates that economic growth will likely be sustained in the coming months. Reflecting positive sentiment, optimism picked up to a nine-month high,\u201d Ms. Baluch said.<\/p>\n

PMI measures a country\u2019s manufacturing activity based on the weighted average of f<\/span>ive indices \u2014 new orders (30%), output (25%), employment (20%), suppliers\u2019 delivery times (15%) and stocks of purchases (10%).<\/p>\n

\u201cThe recovery in external demand may still be attributable to the cyclical rebound in global electronics trade. The slower hiring may be a one-of<\/span>f. Prints for forthcoming months may improve by July,\u201d Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said in a Viber message.<\/p>\n

Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message the strong external demand can be traced to the \u201congoing recovery in major export markets, weakening Philippine peso making exports more competitive, growth in digitalization and e-commerce driving demand for electronics, a rebound in global travel and tourism, and a generally brighter economic outlook.\u201d<\/p>\n

However, supply chain bottlenecks, rising shipping costs, and a possible slowdown in key markets could hamper growth in the manufacturing sector in the coming months, Mr. Roces added.<\/p>\n

Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said some manufacturers might have lacked the capacity to meet the uptick in demand.<\/p>\n

\u201cSome firms may have not been able to respond by adding more people to work and meet the higher demand,\u201d he said in a Viber message.<\/p>\n

In an e-mail, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said slower manufacturing activity in May could be partly attributed to the heatwave that led to some reduction in business activities, as well as a tight power supply.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

FACTORY ACTIVITY in the Philippines expanded at a slower pace in May as employment fell for the first time in five months, S&P Global said on Monday.<\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[1],"tags":[14644,11413,14780,170,15219],"class_list":["post-19058","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-bworldonline","tag-growth","tag-manufacturing","tag-may","tag-slows"],"yoast_head":"\nMay manufacturing growth slows - Energy Buzz<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/energybuzz.ph\/may-manufacturing-growth-slows\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"May manufacturing growth slows - 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