Philippine manufacturing PMI deteriorates in September, first contraction in 6 months – BusinessWorld Online
FACTORY ACTIVITY in the Philippines contracted for the first time in six months in September, as manufacturers saw a drop in output and new orders, S&P Global said on Wednesday.
The S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) stood at 49.9 in September, from 50.8 in August.
A PMI reading below 50 shows a deterioration in operating conditions from the preceding month, while a reading above 50 denotes better operating conditions.
This was the second contraction this year or since the 49.4 reading in March, as manufacturers cut output amid uncertainty surrounding US tariff policies at the time.
“The Philippines PMI survey data showed the manufacturing sector moving into negative territory at the end of the third quarter which, despite indicating only a fractional decline, has been highly unusual in the sector’s post-pandemic history,”
David Owen, senior economist at S&P Global Market Intelligence, said.
“New orders and output decreased slightly, as firms mentioned a fall in client numbers and a modest drop in production from the suspension of rice imports,” he added.
According to S&P Global, this was only the third time in over four years that the Philippines’ manufacturing PMI fell below 50.” — Aubrey Rose A. Inosante