Philippines Manufacturing PMI2016-2020 Data | 2021-2022 Forecast | Calendar

The IHS Markit Philippines Manufacturing jumped to 50.1 in September 2020 from 47.3 in August, as more parts of the economy reopened following the easing of coronavirus restrictions, with new orders growing for the first time since February. Also, export sales expanded, ending a six-month sequence, as foreign clients bought in advance to prepare for firmer market conditions in the months ahead. Meantime, output shrank the least in three months, while employment fell for the seven-month running. Backlogs of work, meantime, fell further, amid evidence of persistent spare capacity. On the price front, cost burdens rose solidly due to higher transportation costs, material shortages, and reports of supplier surcharges related to the pandemic. Meantime, factory gate charges rose marginally amid difficulty passing on higher costs to clients due to tough market competition. Finally, sentiment was at its highest since February.

The IHS Markit Philippines Manufacturing fell to 47.3 in August 2020 from 48.4 in July, pointing to the sixth straight month of contraction as the government impose stricter quarantine measures in Manila following the recent rise in new COVID-19 cases. Output fell faster, while new orders shrank the most in three months. Export sales fell, but at a modest rate, while employment declined the least in three months and stocks of purchased items fell for the sixth month running. At the same time, finished goods inventories dropped solidly. Delivery times lengthened again as has been the case in each month since August 2019. On the cost front, input prices rose at the sharpest pace since February 2019 due to supplier shortages and increased import costs. Overall output charges rose modestly, with some firms continuing to offer discounts in order to stimulate sales. Looking ahead, confidence remained subdued.

The IHS Markit Philippines Manufacturing dropped to 48.4 in July 2020 from 49.7 in the prior month. This was the fifth straight month of contraction in factory activity, with parts of the country experiencing further lockdown restrictions, such as in Manila and Cebu. Firms saw a renewed fall in output levels, as new work continued to decline and export demand weakened sharply. Also, employment shrank for the fifth month in a row, with the rate of job shedding being the most marked since March and backlogs declining at the steepest rate in four months. On the price front, input prices rose for the third month running and at the fastest pace in nearly 1-1/2 years, amid higher oil prices. Meantime, output charges rose marginally and weaker than the uptick in input costs. Lastly, confidence weakened for the first time since March, due to concerns of the long-term impact from the pandemic.

The IHS Markit Philippines Manufacturing jumped to 49.7 in June 2020 from 40.1 a month earlier, amid the relaxation of quarantine measures relating to the coronavirus disease, with output increasing for the first time since February. In addition, export orders fell at the softest rate in four months. Meantime, new orders continued to decline though softer, which led to a further sharp cut in employment and drops in both purchases and inventories. On the price front, input cost inflation soared to a 16-month high as firms saw a quicker increase in supplier prices amid transport difficulties and higher freight charges. Meanwhile, selling prices rose slightly, despite discount offerings to customers. Lastly, sentiment reached its highest since February, on hopes that further relaxation of Covid-19 quarantine measures would help firms to regain customers and resume plans to develop new products.