The Philippines manufacturing sector experienced notable growth in October, backed by strong new order volumes, as reported by S&P Global. The manufacturing purchasing managers index (PMI) registered at 52.9 in October, a slight decline from September's 53.7, but still above the critical 50-point threshold that signifies expansion.
This result was influenced by a robust increase in new orders, enabling manufacturers to elevate their output levels. In October, factory managers in the Philippines increased their hiring practices at the fastest pace in six years. 'Improved demand trends allowed firms to expand their workforce numbers strongly.
Filipino goods producers ramped up hiring, and the recent wave of job creation marked the most significant increase since mid-2017,' stated the report. However, the sector also faced supply chain challenges, as conditions continued to be strained. 'Supply chains remained stretched, with vendor performance worsening to the second-greatest degree since December 2022.
Raw material shortages were a key issue, with port congestion also cited by panelists.' Moreover, the manufacturing sector encountered escalating costs in October due to rising material expenses and a depreciating Philippine peso, which further elevated import costs. Consequently, some companies chose to delay purchases due to these high material costs. Despite these hurdles, optimism among manufacturers in the Philippines grew in October, with around half of the managers expressing a positive outlook for the coming year.
The PMI, facilitated by S&P Global, is based on survey responses collected from 400 manufacturers between October 10 and October 24..