MANILA, Philippines — Philippine factories posted faster output growth in May, with manufacturers reporting faster delivery of raw materials they need for production, which helped them meet growing demand.
Results of a survey of around 400 companies showed the Philippines’ Purchasing Managers’ Index (PMI) — a measure of factory output — went up to 52.2 in May, from the 8-month low of 51.4 in April, S&P Global said in a report on Thursday.
The latest reading stayed above the 50-threshold separating growth from contraction. Maryam Baluch, economist at S&P Global, said the PMI expansion in May signaled a “quicker improvement in operating conditions”.
“The upturn was supported by a solid rise in both output and factory orders, with firms also expanding their workforce numbers for the first time in four months,” Baluch said.
S&P said there were “strong” demand conditions last month, translating to more orders especially from foreign markets. Some manufacturers also attracted new clients.
To meet the robust demand, local factories fattened their stocks of raw materials and pre-production items, which arrived in shorter time in May although there were still some reports of material scarcity.
Companies also expanded their hiring activity for the first time in four months to keep up with heightened production.
“In terms of future output, firms remain largely upbeat, though confidence did take a slight hit and dipped to an 11-month low,” Baluch explained.