{"id":19551,"date":"2024-07-02T03:04:36","date_gmt":"2024-07-02T03:04:36","guid":{"rendered":"https:\/\/energybuzz.ph\/staging\/6915\/philippine-manufacturing-growth-slips-to-3-month-low\/"},"modified":"2024-07-02T03:04:36","modified_gmt":"2024-07-02T03:04:36","slug":"philippine-manufacturing-growth-slips-to-3-month-low","status":"publish","type":"post","link":"https:\/\/energybuzz.ph\/staging\/6915\/philippine-manufacturing-growth-slips-to-3-month-low\/","title":{"rendered":"Philippine manufacturing growth slips to 3-month low"},"content":{"rendered":"<div>\n<p class=\"p2\">PHILIPPINE MANUFACTURING activity in June expanded at its slowest pace in three months amid cooling demand, S&amp;P Global said.<\/p>\n<p class=\"p3\">The S&amp;P Global Philippines Manufacturing Purchasing Managers\u2019 Index (PMI), which measures the country\u2019s monthly factory performance, stood at 51.3 in June, slightly lower than the 51.9 reading in May.<\/p>\n<p class=\"p3\">June was the 10<sup>th<\/sup> consecutive month that PMI was above the 50 mark, which signals an improvement in operating conditions from the previous month. A reading below 50 indicates the opposite.<\/p>\n<p class=\"p3\"><span class=\"s1\"><a title=\"Manufacturing Purchasing Managers\u2019 Index (PMI) of select ASEAN economies, June 2024\" href=\"https:\/\/www.flickr.com\/photos\/142608056@N02\/53828067960\/in\/photostream\/\" data-flickr-embed=\"true\"><img loading=\"lazy\" fetchpriority=\"high\" loading=\"lazy\" fetchpriority=\"high\" decoding=\"async\" class=\"alignleft\" src=\"https:\/\/energybuzz.ph\/staging\/6915\/wp-content\/uploads\/2024\/07\/53828067960_f960fa35ca_o.jpg\" alt=\"Manufacturing Purchasing Managers\u2019 Index (PMI) of select ASEAN economies, June 2024\" width=\"300\" height=\"3693\"><\/a><script async src=\"\/\/embedr.flickr.com\/assets\/client-code.js\" charset=\"utf-8\"><\/script>\u201cWhile strong improvements in demand trends earlier in the second quarter allowed manufacturing <\/span><span class=\"s2\">f<\/span><span class=\"s1\">irms to raise their production volumes at a solid and sustained rate in June, the recent cooling in demand conditions could mean weaker upticks in output as we move into the second half of the year,\u201d S&amp;P Global Market Intelligence economist Maryam Baluch said in a report. <\/span><\/p>\n<p class=\"p3\">The Philippines\u2019 PMI reading was the third fastest among six Association of Southeast Asian Nations (ASEAN) member countries in June and lower than the ASEAN average of 51.7.<\/p>\n<p class=\"p3\"><span class=\"s3\">The Philippines was behind Vietnam (54.7) and Thailand (51.7), but ahead of Myanmar and Indonesia (50.7). Malaysia saw a slight contraction (49.9) in June. <\/span><\/p>\n<p class=\"p3\">The headline PMI measures manufacturing conditions through the weighted average of five indices \u2014 new orders (30%), output (25%), employment (20%), suppliers\u2019 delivery times (15%) and stocks of purchases (10%).<\/p>\n<p class=\"p3\">S&amp;P Global said Philippine manufacturers saw solid growth in production in June, the fastest in six months.<\/p>\n<p class=\"p3\">However, manufacturing <span class=\"s2\">f<\/span>irms saw \u201ca notable cooldown\u201d in growth in new orders. It noted the growth in foreign orders for Filipino-made goods weakened to a three-month low.<\/p>\n<p class=\"p3\">Cooling demand allowed manufacturers to address backlogs at the fastest pace in three months, S&amp;P Global said.<\/p>\n<p class=\"p3\">It said manufacturing firms increased purchasing activity at the fastest pace since July 2023 in anticipation of rising production volume in the next few months.<\/p>\n<p class=\"p3\">\u201cWhile growth in output fed through to higher purchasing activity, it failed to translate into job creation. The second consecutive month of job shedding re<span class=\"s2\">f<\/span>lected the lack of pressure on operating capacity within the sector, as backlogs were depleted sharply,\u201d Ms. Baluch said.<\/p>\n<p class=\"p3\"><span class=\"s4\">S&amp;P Global noted firms reduced workforce numbers in June due to rising spare capacity. <\/span><\/p>\n<p class=\"p3\"><span class=\"s4\">\u201cJune data also signaled a renewed rise in cost burdens, following a slight decrease in May. The rate of input price in<\/span><span class=\"s2\">f<\/span><span class=\"s4\">lation was the strongest since February amid reports of raw material shortages, but nonetheless remained softer than the series average,\u201d it said, noting this prompted firms to raise prices.<\/span><\/p>\n<p class=\"p3\"><span class=\"s2\">Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said manufacturing\u2019s continued expansion is \u201ca bright spot for the economy, as partly reflected by the pickup in both exports and imports in recent months, especially electronics.\u201d<\/span><\/p>\n<p class=\"p3\"><span class=\"s4\">\u201cLower Fed and local interest rates would help reduce borrowing costs and help spur greater demand for loans by some manufacturers,\u201d Mr. Ricafort said.<\/span><\/p>\n<p class=\"p3\"><span class=\"s2\">Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said the government should keep a close eye on factory activity if it posts a decline for the rest of the year.<\/span><\/p>\n<p class=\"p3\"><span class=\"s4\">\u201cGovernment should look at whether the three-month low was due to elevated electricity prices in the past three months, or whether global <\/span><span class=\"s2\">f<\/span><span class=\"s4\">irms are starting to look to other economies to deliver on various orders,\u201d he said in a Viber message.<\/span><\/p>\n<p class=\"p3\"><span class=\"s5\">S&amp;P Global said Philippine manufacturers maintained a positive outlook for produc<\/span><span class=\"s2\">tion in the next 12 months, although weaker than May\u2019s recent<\/span><span class=\"s5\"> high.<\/span><\/p>\n<p class=\"p3\"><span class=\"s4\">\u201cFuture expectations also retreated, further alluding to softening sentiment in the outlook. However, in<\/span><span class=\"s2\">f<\/span><span class=\"s4\">lationary pressures remained in check, despite a renewed rise in operating costs. Relatively soft and subdued upticks in costs and charges could help the sector generate demand in the coming months,\u201d Ms. Baluch said. \u2014 <b>Beatriz Marie D. Cruz<\/b><\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<div>PHILIPPINE MANUFACTURING activity in June expanded at its slowest pace in three months amid cooling demand, S&amp;P Global said. The S&amp;P Global Philippines Manufacturing Purchasing Managers\u2019 Index (PMI), which measures the country\u2019s monthly factory performance, stood at 51.3 in June, slightly lower than the 51.9 reading in May. June was the 10th consecutive month that [\u2026]<\/div>\n","protected":false},"author":1,"featured_media":19552,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[1],"tags":[18235,14644,11413,730,14780,185,7590],"class_list":["post-19551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-3-month","tag-bworldonline","tag-growth","tag-low","tag-manufacturing","tag-philippine","tag-slips"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Philippine manufacturing growth slips to 3-month low - 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\/philippine-manufacturing-growth-slips-to-3-month-low\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Philippine manufacturing growth slips to 3-month low - Energy Buzz\" \/>\n<meta property=\"og:description\" content=\"PHILIPPINE MANUFACTURING activity in June expanded at its slowest pace in three months amid cooling demand, S&amp;P Global said. The S&amp;P Global Philippines Manufacturing Purchasing Managers\u2019 Index (PMI), which measures the country\u2019s monthly factory performance, stood at 51.3 in June, slightly lower than the 51.9 reading in May. 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