PHILIPPINE factory activity returned to expansion in May as stronger domestic demand lifted output and recent orders, at the same time as the Middle East conflict continues to affect supply chains and costs, S&P Global said on Monday.
The Philippines Manufacturing Purchasing Managers’ Index (PMI) rose to 50.8 in May from 48.3 in April. A PMI reading above 50 indicates an improvement in operating conditions from the previous month, while a reading below 50 signals deterioration.
“The general expansion was driven by a fresh rise in recent orders, which followed a pointy reduction in April. Improved client demand and recent customer wins were said to have driven growth,” S&P Global said.
Nevertheless, last month’s rebound was “only modest and historically subdued,” it said:
Maryam Baluch, an economist at S&P Global Market Intelligence, said despite the renewed growth, “supply-chain disruption and value pressures worsened because the Middle East conflict entered its third month.” — Justine Irish DP. Tabile