The IHS Markit Philippines Manufacturing edged up to 51.7 in December 2019 from a five-month low of 51.4 in November, signalling modest improvement in the sector that was in line with the average seen for the year. The improvement was partly driven by a solid rise in new orders, with the rate of growth strengthening slightly from November. Alongside a broad-based increase in sales, firms noted a slight upturn in new work from foreign clients, marking only the second monthly expansion in seven months. At the same time though, output rose marginally, with the pace of growth weakening to a 27-month low. Input buying rose, although the rate of growth was the softest in ten months. Meantime, employment rose marginally, while backlogs of work fell further. On the price front, input cost inflation was at its lowest since July, linked by panellists to a lack of supply. Average charges, meanwhile, raised, albeit only modestly. Looking ahead, sentiment was subdued. Manufacturing Pmi in Philippines averaged 53.23 points from 2016 until 2019, reaching an all time high of 57.50 points in September of 2016 and a record low of 50.60 points in August of 2017. source: Markit Economics

Manufacturing Pmi in Philippines is expected to be 52.00 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Manufacturing Pmi in Philippines to stand at 53.00 in 12 months time. In the long-term, the Philippines Manufacturing PMI is projected to trend around 54.40 points in 2020, according to our econometric models.

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Philippines Manufacturing PMI

Actual Previous Highest Lowest Dates Unit Frequency
51.70 51.40 57.50 50.60 2016 - 2019 points Monthly

News Stream
Philippines Factory Activity Growth at 5-Month Low
The IHS Markit Philippines Manufacturing PMI dropped to a five-month low of 51.4 in November 2019 from 52.1 in the previous month, as output rose at its weakest pace since April. Also, new orders advanced at the softest rate in three months mainly and new export orders dropped for the fifth time in six months. Additionally, employment stagnated following four successive months of job creation; and inventories of both pre- and post-production goods went up at subdued rates. On the price front, input price inflation accelerated to a nine-month high, driven by higher cost of raw materials; and output prices increased advanced slightly faster than October's 45-month low. Finally, sentiment strengthened to a nine-month high, as companies noted that plans for 2020, such as new products and factory openings, boosted optimism.

Philippines Manufacturing Activity Rises to 3-Month High
The IHS Markit Philippines Manufacturing PMI rose to a three-month high of 52.1 in October 2019 from 51.8 in the previous month. Both new orders and output grew at a slightly faster pace, with export sales expanding for the first time in five months. Meantime, employment increased at the slowest rate in three months, and buying activity rose the least in six months. On the price front, input prices continued to tick up, due to higher cost of raw materials, including metals and foodstuff; while output cost inflation went down to its softest pace since the first month of data collection in January 2016. Looking ahead, sentiment weakened further, reaching an all-time record low.

Philippines Manufacturing Growth Little-Changed in September
The IHS Markit Philippines Manufacturing PMI edged down to 51.8 in September 2019 from 51.9 in the previous month, marking the slowest expansion in factory activity since June. Output growth slowed for the third month running and the rate of job creation softened from August's recent high, as greater labour requirements were offset by resignations at a number of companies. Also, purchasing activity grew less partly due to weaker growth. In addition, sales to overseas customers fell for the fourth month in a row, which was the steepest since the survey began in January 2016. Meanwhile, new orders expanded at a sharper rate, driven by domestic markets, as client orders grew in size. In terms of prices, input price inflation accelerated, amid higher raw material prices; while output charges went up the least since June 2017. Finally, sentiment fell to lowest in the series history amid fears of difficult trading conditions.

Philippines Factory Activity Slows Slightly in August
The IHS Markit Philippines Manufacturing PMI edged down to 51.9 in August 2019 from a six-month high of 52.1 in the previous month. Output growth eased toa four-month low, and new orders expanded at the softest rate in 13 months, with some firms being impacted by monsoons as well as a drop in demand from foreign clients. Meanwhile, employment increased the most since November 2017, while firms continued to lower backlogs. On the price front, input prices rose less, but the rate of inflation was weak compared to the 44-month series history; while, selling prices increased modestly. Finally, sentiment remained positive overall, although the level of optimism was the second-weakest since the series began.

Philippines Factory Growth Picks Up to 6-Month High
The IHS Markit Philippines Manufacturing PMI rose to 52.1 in July 2019 from 51.3 in a month earlier. The reading pointed to the strongest expansion in factory activity since January, as new order growth hit a six-month high, output advanced solidly, and employment grew for the first time since February. Meanwhile, exports fell for the second straight month and buying levels rose only marginally, as businesses reportedly used up previous stocks in production. Regarding prices, input cost inflation was relatively soft, amid an improvement in the exchange rate with the USD, which helped to ease the impact of higher raw material prices. Meantime, selling prices were subdued, with companies raising their charges at the softest rate in over two years. Lastly, businesses remained optimistic, amid expectations of new products and company development.

Philippines Manufacturing Activity at 3-Month High
The Nikkei Philippines Manufacturing PMI rose to 51.3 in June 2019 from 51.2 in the prior month, as output increased at the strongest pace in four months mostly due to positive impact of recent product launches and branch openings. Also, new orders advanced mainly driven by export sales, which increased at the quickest rate in nearly a year. Additionally, purchasing activity rose solidly and stock levels expanded after a marginal reduction in the previous month. Meanwhile, employment shrank st the steepest pace in 15 months as firms did not replace multiple resignations. On the price front, input cost inflation fell to a 39-month low, while output charges inflation rose the fastest pace since January. Finally, sentiment improved for the second consecutive month linked to higher domestic and foreign demand growth, new store openings and product launch.

Philippines Manufacturing PMI
The IHS Markit Philippines Manufacturing Purchasing Managers’ Index measures the performance of the manufacturing sector and is derived from a survey of 450 manufacturing companies. The Index is based on five individual indexes with the following weights: New Orders (30 percent), Output (25 percent), Employment (20 percent), Suppliers’ Delivery Times (15 percent) and Stock of Items Purchased (10 percent), with the Delivery Times index inverted so that it moves in a comparable direction. A reading above 50 indicates an expansion of the manufacturing sector compared to the previous month; below 50 represents a contraction; while 50 indicates no change.

Philippines Business Last Previous Highest Lowest Unit
Business Confidence 40.20 37.30 54.90 -32.60 points [+]
Industrial Production -5.80 -4.70 68.60 -26.60 percent [+]
Capacity Utilization 84.45 84.47 84.47 74.30 percent [+]
Changes in Inventories -26360.80 -28657.22 92123.96 -83619.51 PHP Million [+]
Internet Speed 5450.74 4527.48 5450.74 795.57 KBps [+]
IP Addresses 1536948.00 1536732.00 1536948.00 477194.00 IP [+]
Total Vehicle Sales 9246.00 9551.00 14182.00 993.00 [+]
Manufacturing Pmi 51.70 51.40 57.50 50.60 points [+]
Competitiveness Index 61.87 62.13 62.13 3.90 Points [+]
Competitiveness Rank 64.00 56.00 87.00 47.00 [+]
Ease of Doing Business 95.00 124.00 144.00 95.00 [+]
Corruption Index 36.00 34.00 38.00 23.00 Points [+]
Corruption Rank 99.00 111.00 141.00 36.00 [+]