PH manufacturing PMI climbs in Nov

THE Philippines’ manufacturing PMI rose to its highest so far this year in November, an IHS Markit/ Nikkei survey found, buoyed by solid domestic demand.

The poll of purchasing managers, however, also indicated that inflationary pressures had

Results released on Friday showed a seasonally adjusted Purchasing Managers’ Index of 54.8 for the month, up from October’s 53.7. It was still lower compared to the 56.3 posted a year earlier.

The PMI is a composite index representing the weighted aver orders, output, employment, suppliers’ delivery time and stocks. Readings above 50 signal an expansion while readings below 50 signal a contraction.

Survey data showed production had expanded at the fastest rate since May’s 54.3, supported by the largest rise in new orders recorded in a year.

Anecdotal evidence suggested that strong economic conditions, promotional activities and greater client demand had continued to sustain order book growth.

While higher foreign demand contributed, the domestic market remained the key driver as growth in new export orders was well below that of total new business

In response to greater production demand, the survey found for a second month running in November.

Additional manpower enabled companies to adjust to increased workloads, resulting in a further decline in backlogs. Improved production processes and subcontracting also contributed.

Factories also stepped up purchasing activity to meet current and future demand, with the rise in buying levels the highest since December last year.

B4