By Justine Irish D. Tabile, <\/b>Senior Reporter<\/i><\/p>\n
PHILIPPINE FACTORY activity<\/span> continued to expand in June amid <\/span>stronger output and latest orders, S&P Global said on Wednesday.<\/span><\/p>\n S&P Global Philippines Manufacturing Purchasing Managers\u2019 Index (PMI) inched as much as 50.9 in June from 50.8 in May, signaling a second consecutive month of modest improvement in operating conditions across the country\u2019s goods-producing sector.<\/p>\n A PMI reading above 50 denotes higher operating conditions than within the preceding month, while a reading below 50 shows deterioration.<\/p>\n \u201cManufacturing conditions within the Philippines continued to enhance in June, constructing on the tentative recovery observed in May because the sector regained footing following disruptions linked to the war within the Middle East,\u201d Maryam Baluch, an economist at S&P Global Market Intelligence, said within the report.<\/p>\n The Philippines\u2019 June PMI <\/span>also exceeded the Association of Southeast Asian Nations\u2019 average of fifty.5, although the regional reading eased from 51.5 in May.\u00a0<\/span><\/p>\n The Philippines had the third best PMI reading in June, after Vietnam\u2019s 51.8 (from 52.8) and Thailand\u2019s 53.6 (from 52.6).<\/p>\n The country was ahead of Malaysia which had a PMI of fifty.7 (from 49.9), Myanmar with 47.4 (from 49.3) and Indonesia with 46.9 (from 50).<\/p>\n S&P Global said Philippine manufacturers saw output and latest orders grow for a second straight month. Nevertheless, the rise in latest orders strengthened barely, while production growth eased in June.<\/span><\/p>\n \u201cBased on anecdotal evidence, where firms reported an increase in output, this was supported by growth in latest orders, which in turn was underpinned by improved underlying demand trends and latest client wins,\u201d it said.<\/span><\/p>\n With the rise in latest orders, S&P Global said Philippine manufacturers boosted purchases of additional raw materials and semi-finished items for the primary time in 4 months. The rise in purchasing activity was marginal, but helped firms maintain their inventory of inputs.<\/span><\/p>\n Ms. Baluch also noted a more stable employment picture within the Philippines in June. <\/span><\/p>\n \u201cFilipino manufacturers recorded unchanged staffing levels in June, marking a stabilization compared with job shedding seen in April and May,\u201d she said. \u201cFurthermore, signs of renewed pressure on capability, as indicated by a fresh rise in backlogs, suggests potential for future recruitment.\u201d<\/span><\/p>\n S&P Global also noted there have been signs of recovery in supply-chain disruption in June, as firms reported a \u201cmodest deterioration in vendor performance.\u201d<\/span><\/p>\n Ms. Baluch said inflationary pressures began to ease in June after cost burdens increased on the weakest pace in 4 months. Nevertheless, sharp increases in costs in April and May continued to weigh on manufacturers\u2019 sentiment.<\/p>\n S&P Global said manufacturers remained optimistic, citing expectations of stronger demand, latest product launches, and expansion into latest markets.<\/span><\/p>\n Nevertheless, overall business confidence fell to its lowest level since January, which Ms. Baluch said indicates that firms are cautious in regards to the outlook.<\/p>\n John Paolo R. Rivera, a senior research fellow on the Philippine Institute for Development Studies, said the expansion in June reflects resilient domestic demand, gradual improvements in supply conditions and continued business activity despite a difficult external environment.<\/span><\/p>\n \u201cIf inflation continues to ease, it should help sustain manufacturing growth by lowering cost pressures and supporting household purchasing power. But I expect the expansion to stay modest somewhat than robust,\u201d he told BusinessWorld.<\/i><\/span><\/p>\n Inflation eased to six.8% in May from 7.2% in April, remaining above the central bank\u2019s 2-4% goal but closer to its 6.4% full-year forecast.<\/p>\n The Bangko Sentral ng Pilipinas said June inflation could ease further to as little as 6%, projecting last month\u2019s print to settle throughout the 6%-7% range.<\/p>\n Mr. Rivera said the manufacturing sector\u2019s outlook will still rely upon external demand, oil prices, foreign exchange rate movements, financing costs, and the pace of infrastructure spending.<\/span><\/p>\n \u201cSustained improvements in these areas would offer a stronger foundation for manufacturing growth in the approaching months,\u201d he added.<\/p>\n Federation of Philippine Industries Chair Elizabeth H. Lee said business confidence stays subdued as firms proceed to grapple with global uncertainties, supply-chain risks and better input costs.<\/p>\n \u201cWe’ve two months of expansion, and we’re looking forward to a stronger positive trend on condition that the production volume also was relatively resilient with a positive 12% growth in April,\u201d she added.<\/p>\n Nevertheless, Ms. Lee said recent cost pressures are being compounded by tighter financing conditions following recent policy rate hikes, in addition to the recent P85 wage increase for Metro Manila staff.<\/span><\/p>\n \u201cJune\u2019s PMI uptick shows Philippine manufacturing can still grow under pressure. Nevertheless, sustaining that growth means supporting staff while preserving businesses\u2019 ability to take a position, employ, and compete. We cannot treat one consider isolation,\u201d she added.<\/p>\n<\/p><\/div>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Staff are seen contained in the latest Mega Manufacturing Plant in Sto. Tomas Batangas on Wednesday, March 1, 2023. \u2014 PHILIPPINE STAR\/KJ ROSALES By Justine Irish D. Tabile, Senior Reporter PHILIPPINE FACTORY activity continued to expand in June amid stronger output and latest orders, S&P Global said on Wednesday. S&P Global Philippines Manufacturing Purchasing Managers\u2019 […]<\/p>\n","protected":false},"author":1,"featured_media":359532,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[4193,1082,105,1901,19254],"class_list":["post-359531","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-improves","tag-june","tag-manufacturing","tag-philippine","tag-pmi"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t![\"\"](\"https:\/\/bworldonline.com\/wp-content\/uploads\/2026\/07\/260702Asean_Manufacturing-1024x1024.jpg\")
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