Factory output sustains uptick
The latest reading signaled a solid uptick in operating conditions, with the rate of growth matching that seen in January
Manufacturing production has sustained an upsurge in February based on the monthly IHS Markit’s purchasing managers’ index (PMI).
“The IHS Markit Philippines Manufacturing PMI remained at 52.5 in February, posting above the 50 neutral value that separates expansion from contraction,” it said.
“The latest reading signaled a solid uptick in operating conditions, with the rate of growth matching that seen in January,” it added.
IHS Markit economist Shreeya Patel said the development reflects further progress in the sector as both output and new orders recorded growth along with an acceleration of pre-production inventories.
“The rate of job shedding eased to the softest in 12 months,” Patel said.
According to her, controlling the pandemic’s impact remains the top priority as such continue to pose a huge threat to transportation delays and material shortages.
Rizal Commercial Banking Corp. chief economist Michael Ricafort recognized the recent PMI data as a “pleasant surprise” as such proved to be the highest in over two years.
“It is slightly better versus the 52.3 a year-ago or in February 2020 or shortly before the Covid-19 pandemic, a leading indicator that could suggest further pick up in economic activities for the second straight month of 2021,” Ricafort explained. Development reflects further progress in the sector as both output and new orders recorded growth along with an acceleration of pre-production inventories.
Looser restrictions likely
In a separate development, Finance Secretary Carlos Dominguez III said that a much looser restriction could be possible in the succeeding month given the arrival of the much awaited Covid-19 vaccines.
“I believe so. National and local governments are working together with the private sector to assure that all adults are inoculated as soon as possible,” Dominguez said.
Majority of Metro Manila mayors along with the state’s top economic managers earlier called for a much looser modified general community quarantine to further speed up the country’s recovery from the health crisis.