Factory growth in PH 2nd-best in ASEAN

The manufacturing activity in the Philippines improved last April securing the second spot with Vietnam, according to an IHS Markit survey conducted for Nikkei.

The country recorded a 52.7 Purchasing Managers Index (PMI) last month, which is a “solid increase” from its 51.5 reading in March. This is also above the 51 PMI average of seven select Association of Southeast Nations (ASEAN) member-states — the highest level in a year from 50.1 in the preceding month.

Meanwhile, Myanmar ranked first as the country saw a “sharp increase” of its PMI score to 55.5. Indonesia and Singapore had a “moderate increase” to 51.6 and 51.1 ranking third and fourth respectively.

Taking the fifth spot is Thailand, which saw a “marginal decrease” to 49.5, followed by Malaysia with a “modest decrease” to 48.6.

A PMI score above 50 usually means that there is improvement in business conditions compared to the previous month, and a reading below 50 suggests deterioration.

According to the report, both Vietnam and the Philippines saw “faster improvements in operating conditions.”

Nevertheless, the report also noted that Philippine manufacturers had to deal with higher costs. Hence, they had to raise their selling prices in order “to help protect profit margins”, as the country registered the steepest rate of charge inflation.

via Business World / E.J.C. Tubayan