Exports growth eases in December

MANILA, Philippines - The country’s exports growth could have eased in December amid a moderation in US manufacturing activity during the period, UK-based investment bank Barclays said.

“Export growth is likely to have moderated following the sharp pickup in November, consistent with the cooling in the US ISM (Institute for Supply Management),” Barclays said in a report.

The bank has forecast that outbound shipments could have increased 4.1 percent year-on-year in December, slower than the 19.7-percent rise in November. 

ISM data showed the purchasing manager’s index (PMI), fell to a revised 56.5 in December from 58.7 in November. Latest data showed this picked up slightly to 56.7 in January.

The PMI reflects the strength of the manufacturing sector, and also the economy as a whole. A print of 50 and above shows an expanding industry, while the reverse may reflect moderation in activity.

Official December exports data will be released by the Philippine Statistics Authority on Tuesday.

Merchandise exports in November jumped by almost a fifth to $5.178 billion from $4.325 billion in the same month in 2013.

The uptick was driven by increases in the shipments of coconut oil, cathodes and sections of cathodes, machinery and transport equipment, chemicals, woodcraft and furniture, ignition wiring set and other wiring sets, electronic products, articles of apparel and clothing accessories, and metal components.

Electronic products, the country’s top export, accounted for 49.2 percent of total shipments and climbed 27 percent to $2.546 billion in November.

Japan continued to be the main destination for Philippine exports in November, followed by the United States, China, Taiwan, and Hong Kong.