{"id":20008,"date":"2024-08-02T03:08:37","date_gmt":"2024-08-02T03:08:37","guid":{"rendered":"https:\/\/energybuzz.ph\/staging\/6915\/manufacturing-growth-slows-slightly-in-july\/"},"modified":"2024-08-02T03:08:37","modified_gmt":"2024-08-02T03:08:37","slug":"manufacturing-growth-slows-slightly-in-july","status":"publish","type":"post","link":"https:\/\/energybuzz.ph\/staging\/6915\/manufacturing-growth-slows-slightly-in-july\/","title":{"rendered":"Manufacturing growth slows slightly in July"},"content":{"rendered":"<div>\n<p class=\"p2\"><span class=\"s1\">MANUFACTURING GROWTH slowed slightly in July amid <\/span><span class=\"s2\">weaker expansion in production <\/span>and orders, S&amp;P Global said on Thursday.<\/p>\n<p class=\"p3\">The S&amp;P Global Philippines Manufacturing Purchasing Managers\u2019 Index (PMI) stood at 51.2 in July, easing from 51.3 in June.<\/p>\n<p class=\"p3\">\u201cThe latest index reading signaled only a modest improvement in the health of the Filipino manufacturing sector, and one that was the weakest since March (when PMI stood at 50.9 reading),\u201d it said.<\/p>\n<p class=\"p3\"><a title=\"Manufacturing Purchasing Managers\u2019 Index (PMI) of select ASEAN economies, July 2024\" href=\"https:\/\/www.flickr.com\/photos\/142608056@N02\/53894985576\/in\/dateposted\/\" data-flickr-embed=\"true\"><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"alignleft\" src=\"https:\/\/energybuzz.ph\/staging\/6915\/wp-content\/uploads\/2024\/08\/53894985576_6158c5ea17_o.jpg\" alt=\"Manufacturing Purchasing Managers\u2019 Index (PMI) of select ASEAN economies, July 2024\" width=\"300\" height=\"3693\"><\/a><script async src=\"\/\/embedr.flickr.com\/assets\/client-code.js\" charset=\"utf-8\"><\/script>July also marked the 11<sup>th<\/sup> straight month of improvement in operating conditions. A PMI reading above 50 signals improvement in operating conditions, while a reading below 50 means the opposite.<\/p>\n<p class=\"p3\"><span class=\"s3\">Among Association of Southeast Asian Nations (ASEAN) member countries with available data, the Philippines had the third-highest reading in July after Vietnam (54.7) and Thailand (52.8).<span class=\"Apple-converted-space\">\u00a0 <\/span>Malaysia (49.7), Indonesia (49.3), and Myanmar (48.4) all recorded contractions.<\/span><\/p>\n<p class=\"p3\">Philippine PMI was also lower than the ASEAN average of 51.6 in July.<\/p>\n<p class=\"p3\">\u201cThe second half of the year started modestly, with the Filipino manufacturing sector signaling further upticks in output and new orders,\u201d Maryam Baluch, an economist at S&amp;P Global Market Intelligence, said in a report.<\/p>\n<p class=\"p3\"><span class=\"s3\">\u201cThough in both cases, the rates of increase were weaker than their respective long-run averages, thereby indicating relatively subdued growth across the sector.\u201d<\/span><\/p>\n<p class=\"p3\">S&amp;P Global said the latest data showed production activity grew at the slowest pace in the last four months due to longer supplier delivery times.<\/p>\n<p class=\"p3\">\u201cThe incidence of delay was the most pronounced since February as port congestion hampered the timely delivery of inputs,\u201d it said.<\/p>\n<p class=\"p3\">On the other hand, demand improved in the Philippine manufacturing sector.<\/p>\n<p class=\"p3\">\u201cNew orders rose at a rate faster than June\u2019s five-month low. However, firms recorded modest and cooling demand from overseas markets,\u201d S&amp;P Global said.<\/p>\n<p class=\"p3\">Despite this, a sustained increase in production requirements allowed manufacturers to boost purchasing activity in July.<\/p>\n<p class=\"p3\">\u201cThough the rate of growth softened since the preceding survey period, it was solid overall. Firms remained keen to expand their holdings of finished goods and purchased items. Both pre-and post-production inventories were accumulated at rates stronger than their respective long-run averages,\u201d S&amp;P Global said.<\/p>\n<p class=\"p3\">Even though the backlog fell for the 13<sup>th<\/sup> month in a row, manufacturing firms raised staffing levels in July after seeing a \u201cstrong uptick\u201d in new orders. S&amp;P said this was the first increase in employment since April, although it was still \u201cmodest overall.\u201d<\/p>\n<p class=\"p3\">It said the July data showed costs slightly increased in July even though the rate of input price inflation went up to a five-month high. On the other hand, the pace of the rise in charges slipped to a three-month low.<\/p>\n<p class=\"p3\"><span class=\"s3\">The e<\/span><span class=\"s2\">f<\/span><span class=\"s3\">fects of Super Typhoon Carina had likely caused disruptions in manufacturing and other business activities in Metro Manila and nearby provinces, said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.<\/span><\/p>\n<p class=\"p3\">Last week, Metro Manila and nearby provinces experienced torrential rains and heavy <span class=\"s1\">f<\/span>looding brought by Carina (international name: Gaemi) and the southwest monsoon.<\/p>\n<p class=\"p5\"><b>OUTLOOK<br \/>\n<\/b><span class=\"s3\">Meanwhile, Ms. Baluch said easing inflation, as seen in the PMI data, could allow the Philippine central bank to begin cutting rates.<\/span><\/p>\n<p class=\"p3\">\u201cEasing financial conditions should help solidify and strengthen growth in the coming months,\u201d she noted.<\/p>\n<p class=\"p3\">\u201cMoreover, sustained expansions in purchasing activity and the renewed uptick in workforce numbers, indicate that goods producers are likely banking on the strengthening of demand conditions in the coming months.\u201d<\/p>\n<p class=\"p3\">The Monetary Board has kept its key policy rate at an over 17-year high of 6.5% to tame inflation. Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. signaled a possible rate cut at their Aug. 15 meeting.<\/p>\n<p class=\"p3\">Mr. Ricafort said the slower PMI growth \u201ccould help support\/justify\u201d a 25-basis-point rate cut as early as next week.<\/p>\n<p class=\"p3\">S&amp;P Global said manufacturing firms expect production to increase in the next 12 months.<\/p>\n<p class=\"p3\">\u201cThe Future Output Index, which printed comfortably above the neutral 50 mark in July, indicated optimism regarding the outlook across the sector,\u201d it said.<\/p>\n<p class=\"p3\">However, there was a slight dip in the degree of confidence as some firms remained cautious of future demand.<\/p>\n<p class=\"p3\">Security Bank Corp. Chief Economist Robert Dan J. Roces noted that manufacturing firms\u2019 cautious optimism is reflected by their hiring activity and inventory accumulation.<\/p>\n<p class=\"p3\">\u201cWhile risks such as global economic conditions and supply chain disruptions persist, the overall outlook for Philippine manufacturing remains positive, with growth expected to continue, albeit at a modest pace, in the coming months,\u201d he said in a Viber message.<\/p>\n<p class=\"p3\">Mr. Ricafort said there is a seasonal increase in imports and production in the third quarter in preparation for higher demand in the fourth quarter.<\/p>\n<p class=\"p3\"><span class=\"s3\">\u201cThis would help boost manufacturing\/production growth in the coming months,\u201d he said, although business activity might slow during the \u201cghost month\u201d of August. \u2014 <b>Beatriz Marie D. Cruz<\/b><\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<div>MANUFACTURING GROWTH slowed slightly in July amid weaker expansion in production and orders, S&amp;P Global said on Thursday. The S&amp;P Global Philippines Manufacturing Purchasing Managers\u2019 Index (PMI) stood at 51.2 in July, easing from 51.3 in June. \u201cThe latest index reading signaled only a modest improvement in the health of the Filipino manufacturing sector, and [\u2026]<\/div>\n","protected":false},"author":1,"featured_media":20009,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[1],"tags":[14644,11413,15273,14780,7191,15219],"class_list":["post-20008","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-bworldonline","tag-growth","tag-july","tag-manufacturing","tag-slightly","tag-slows"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Manufacturing growth slows slightly in July - 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\/manufacturing-growth-slows-slightly-in-july\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Manufacturing growth slows slightly in July - Energy Buzz\" \/>\n<meta property=\"og:description\" content=\"MANUFACTURING GROWTH slowed slightly in July amid weaker expansion in production and orders, S&amp;P Global said on Thursday. The S&amp;P Global Philippines Manufacturing Purchasing Managers\u2019 Index (PMI) stood at 51.2 in July, easing from 51.3 in June. \u201cThe latest index reading signaled only a modest improvement in the health of the Filipino manufacturing sector, and [\u2026]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/energybuzz.ph\/manufacturing-growth-slows-slightly-in-july\/\" \/>\n<meta property=\"og:site_name\" content=\"Energy Buzz\" \/>\n<meta property=\"article:published_time\" content=\"2024-08-02T03:08:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/energybuzz.ph\/wp-content\/uploads\/2024\/08\/53894985576_6158c5ea17_o.jpg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/energybuzz.ph\\\/manufacturing-growth-slows-slightly-in-july\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/energybuzz.ph\\\/manufacturing-growth-slows-slightly-in-july\\\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/energybuzz.ph\\\/#\\\/schema\\\/person\\\/344f8dbaaecf75e51367eef93f492892\"},\"headline\":\"Manufacturing growth slows slightly in July\",\"datePublished\":\"2024-08-02T03:08:37+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/energybuzz.ph\\\/manufacturing-growth-slows-slightly-in-july\\\/\"},\"wordCount\":798,\"publisher\":{\"@id\":\"https:\\\/\\\/energybuzz.ph\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/energybuzz.ph\\\/manufacturing-growth-slows-slightly-in-july\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/energybuzz.ph\\\/staging\\\/6915\\\/wp-content\\\/uploads\\\/2024\\\/08\\\/53894985576_6158c5ea17_o-scaled.jpg\",\"keywords\":[\"bworldonline\",\"growth\",\"july\",\"manufacturing\",\"slightly\",\"slows\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/energybuzz.ph\\\/manufacturing-growth-slows-slightly-in-july\\\/\",\"url\":\"https:\\\/\\\/energybuzz.ph\\\/manufacturing-growth-slows-slightly-in-july\\\/\",\"name\":\"Manufacturing growth slows slightly in July - 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