The purchasing manufacturing index (PMI) showed a modest improvement in March 2024, showing the sustained growth of the Philippine manufacturing sector.
The PMI reached 50.9 percent in March 2024, although this was lower than February’s’ 51 percent, according to S&P Global.
It marked the seventh consecutive month of improvement, data showed.
“The downturn came despite firms in general recording sustained demand for goods. Sentiment among manufacturers weakened and was the least optimistic in nearly four years. Firms were concerned that increased market competition would limit growth prospects. However, hopes of demand conditions domestically and globally strengthening continued to buoy confidence levels,” said S&P Global Market Intelligence economist Maryam Baluch.
The report noted that while the pace of expansion continued, the growth in new orders remained subdued, and production contracted for the first time since July 2022 due to material shortages.
It said there was increased hiring activity for the second consecutive month. The hiring growth rate was the strongest in one and a half years.
Companies also ramped up hiring and purchasing activity at a faster pace to address inventory gaps. Despite this, confidence in future output dropped to a near four-year low.
New order expansion continued in March, albeit at a slower pace than the previous month. This marked the second-weakest growth in the seven-month expansionary period.
New orders also fueled a fourth consecutive monthly increase in purchasing activity in March. The rate of growth, although marginal, accelerated compared to the previous month.