Manufacturing PMI up in March

MANILA -- The local manufacturing sector's purchasing managers’ index (PMI) increased to 51.5 in March this year from 50.8 the previous month, IHS Markit reported Monday.

The report said PMI grew modestly last month due to increasing output coupled with stronger business outlook which posted its eight-month high in March.

IHS Markit Principal Economist Bernard Aw cited that order book growth hit a three-month high spurred by a revival in exports.

“Not only did export sales return to expansion mode, but the rate of growth was the fastest since the end of 2016. The upturn triggered firms to step up their purchasing activity and build-up stocks,” said Aw.

On the other hand, hiring in the manufacturing sector has remained low.

The report noted that the Tax Reform for Acceleration and Inclusion has continued to exert inflationary pressures in March.

Input costs and selling prices were at their highest in the survey history, IHS Markit said.

“One area of concern is the extent to which sharp cost increases will feed through to consumer prices which, in turn, would affect future monetary policy,” Aw said.

Among surveyed countries in Southeast Asia, the Philippines’ manufacturing PMI topped the scores of Indonesia at 50.7, Malaysia at 49.5, Thailand 49.1, and Singapore at 47.5.