PHILIPPINE MANUFACTURING activity continued to expand in July, posting modest growth as stronger demand offset rising input costs, S&P Global said.
The S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) edged up to 51.8 in July from 50.9 in June, marking a third straight month of expansion.
A PMI reading above 50 signals an improvement in operating conditions from the previous month, while a reading below 50 shows a deterioration.
“Though the latest reading pointed to only a modest improvement in the health of the Filipino manufacturing sector, it marked a welcome shift from the subdued performance seen between March and June,” S&P Global said.
S&P Global said manufacturing output and new orders both rose at faster rates in July, supported by stronger client demand and new business wins.
Filipino manufacturers also increased purchasing activity amid higher production requirements.
However, firms reported a renewed intensification of inflationary pressures.
“Qualitative evidence continued to show that the war in the Middle East was driving up costs, which firms then passed on to customers through higher charges for goods,” S&P Global said. — Justine Irish D. Tabile
