Manufacturing PMI improves in May
Credit to Author: ANNA LEAH E. GONZALES| Date: Mon, 03 Jun 2019 02:51:24 +0000
MANUFACTURING firms in the Philippines saw an improvement in operating conditions in May as faster new order growth encouraged businesses to increase output, an IHS Markit/Nikkei survey said.
Results of the survey released on Monday showed that the seasonally adjusted manufacturing Purchasing Managers’ Index (PMI) went up to 51.2 in May from 50.9 in April, signalling a “modest, but stronger, improvement in the health of the manufacturing sector.”
The PMI is a composite index which represents the weighted average of new orders, output, employment, suppliers’ delivery time and stocks. Readings above 50 signal an expansion while below that is a contraction.
“Filipino goods producers reported an improved picture in May, as output growth strengthened amid a sharper increase in new orders,” said IHS Markit Economist David Owen.
“Firms were helped by a rise in foreign demand for only the second time since last September as the global trade war intensification led to weaker export conditions. This should ease some nerves in the wake of further tariffs announced by the US and China,” Owen said.
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