Manufacturing grows faster in March

MANILA, Philippines - Philippine manufacturing grew at a faster pace in March, the second best performing country in ASEAN, on higher production and new orders, the latest reading of the Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI) showed. 

Domestic factory output registered a PMI reading of 53.8 in March, marginally up from 53.6 percent in February but nonetheless signalling “robust improvement in the health of the sector.” 

Both readings still indicate an improvement in business conditions and activity as a reading below 50 indicates the opposite. The Nikkei Manufacturing PMI is released monthly ahead of official economic data. 

Growth in both output and new orders remained the key drivers for improved manufacturing conditions in March, said IHS Markit which collected data for the index. 

Rising client demand also prompted firms to hire more workers at a rate seen to be highest in four months. Planned business expansions were also cited among the reasons for greater hiring. 

New export sales also rose but at a slower rate to total orders, indicating demand is still stronger in the domestic market. 

Manufacturers, however, continued to feel the pinch of rising input costs in March leading them to raise factory gate prices anew. 

“The March survey points to a further strengthening in the rate of expansion of the Philippines’ manufacturing sector, which bodes well for economic performance in the first quarter. Growth is being driven mostly by robust domestic demand, stemming from buoyant consumers and public infrastructure spending in particular, said IHS Markit economist Bernard Aw. 

“Export growth remained modest, helped by a stronger US dollar.