Further pickup in mfg seen this month

Louella Desiderio - The Philippine Star

MANILA, Philippines — The country’s manufacturing sector likely expanded further in November as restrictions continued to be eased.

Think tank Capital Economics forecasts that the country’s headline purchasing managers’ index (PMI) further picked up to 53 in November from 51 in October.

This would further register above the neutral 50 mark that separates expansion from contraction.

Market intelligence firm IHS Markit is set to release the latest PMI by Dec. 1, Wednesday.

“October manufacturing PMIs showed a significant rebound in Southeast Asia as restrictions there were eased. November readings should reveal a further improvement in industry conditions,” Capital Economics said.

“For the likes of Malaysia, Thailand, and the Philippines, the disruption to industry from the virus is likely to have eased further,” it said.

The October reading was the strongest uptick in seven months or since March 2021, and is over the average for the whole year so far.

In a separate economic preview, IHS Markit said Asia-Pacific economies had seen flash PMIs indicate faster growth in November as the recovery from the latest COVID-19 Delta wave continued.

“ASEAN countries will similarly be observed as to whether October’s recovery momentum has been sustained, with sub-indexes offering particularly important clues on the supply chain situation amid persistent price pressures and lengthy lead times,” IHS Markit said.

The headline PMI provides a quick overview of the health of the manufacturing sector based on the weighted average of five indicators: new orders (30 percent weight), output (25 percent), job creation (20 percent), supplier delivery times (15 percent) and inventories (10 percent).

The government continued to relax mobility measures through the downgrade of the alert level system in Metro Manila and other provinces during the month.

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