LOCAL manufacturing activity fell to its lowest level in more than four years in November this year, dragged down by steep drops in output and new orders, as well as typhoon-related disruptions that slowed production.
S&P Global’s survey of around 400 companies showed the Philippines’ Purchasing Managers’ Index (PMI) plunged to 47.4 from 50.1 in October, marking the “strongest deterioration” in manufacturing conditions since August 2021, its report said on Monday, December 1.
This is now well-below the 50-point threshold that separates growth from contraction.
According to the report, weak customer demand led to the continued decline of outputs, new orders, and export orders. This, in turn, pushed manufacturers to lay off staff for the first time since May.
Production also fell for the third straight month, with some manufacturers reporting typhoon-related disruptions as main factors.
Still, S&P expressed optimism that the slump is only temporary as manufacturers hope for an improvement in economic conditions moving forward.
“Overall, while the manufacturing sector faces immediate challenges, the outlook suggests cautious optimism for growth moving forward.” said Trevor Balchin, Economics Director at S&P Global Market Intelligence. (Nyah Genelle C. De Leon © Philippine Daily Inquirer)
