TOKYO -- The Philippines manufacturing sector showed modest yet stronger improvement in May, with accelerating new order growth pushing output as well as input purchases at a greater rate.
The Nikkei Philippines Manufacturing Purchasing Managers' Index, or PMI, rose to 51.2 in May from 50.9 in April. Although still weak compared to the overall trend across the series, it marked the first time in six months where the PMI increased.
Readings above 50 point to expansion, while those below 50 indicate contraction.
Increasing demand from local customers contributed to the PMI expansion with sales from overseas improving. Some survey respondents noted that recent product launches and branch openings had a positive effect on production growth. Additionally, new export orders grew at the quickest rate in nearly a year.
"Firms were helped by a rise in foreign demand for only the second time since last September as the global trade war intensification led to weaker export conditions," said David Owen, Economist at IHS Markit which compiles the survey. He added that "This should ease some nerves in the wake of further tariffs announced by the US and China."
Meanwhile, Own also pointed out that there have reports of several employee resignations in May and expressed that "Manufacturers may need to curb these resignations if they hope to sustain higher production levels."
For more information, visit IHS Markit website.