Manufacturing rebounds in April

The Philippine manufacturing sector rebounded strongly in April as new orders and output rose, according to S&P Global.

In its latest report released Friday, S&P Global said the country’s manufacturing purchasing managers index (PMI) climbed to 53 in April, indicating an improvement in business conditions. 

This marked a turnaround from March’s reading of 49.4, which had signaled a slight contraction.

A PMI score above 50 points to an expansion in the sector, while a score below that reflects a decline.

“The Filipino manufacturing commenced the second quarter of the year on a solid note, experiencing renewed growth in output and new orders, alongside an increased level of purchasing activity,” said S&P Global Market Economist Maryam Baluch.

The report attributed the improved performance to increased client demand and a temporary uptick in activity tied to the upcoming elections. 

Despite this, employment in the sector held steady for the second consecutive month, and firms saw only a slight decline in backlogged work.

Price pressures also remained modest during the period.

“Encouragingly, inflationary pressures also remained contained and historically subdued,” Baluch noted.

However, business confidence dipped, with firms expressing concern that the current boost in demand may not last beyond the election season. 

The level of optimism over future output dropped to the second-lowest on record, suggesting caution as companies brace for a possible slowdown in production later in the year.