PH manufacturing posts slight rebound in June
The headline S&P Global Philippines Manufacturing PMI stood at 50.7 in June, indicating a stronger, albeit still modest improvement from the 50.1 recorded in May, and still close to the 50.0 threshold that separates expansion from contraction.
'The overall performance of the Filipino manufacturing sector remained relatively subdued as the first half of the year concluded,' S&P Global Market Intelligence economist Maryam Baluch said in a commentary.
'That said, the overall PMI figure masked some pockets of strength, such as the revival in employment, which was the first in four months. Output was also raised, thereby reversing the fall in May,' she added.
Job creation in June was the strongest since November 2024, with panelists citing the greater demand needs, with new orders growing at a faster pace than the previous month, bringing production levels back into expansion territory.
'However, while new orders continue to rise, they do so at a historically muted pace, weighed down by a stalled exports picture. Additionally, supply-side challenges such as delayed delivery times for inputs and material shortages impacted production capacity,' Baluch said.
Delivery times for inputs were extended for the 14th straight month, but the latest was the lease pronounced delay since May 2024. This caused Philippine manufacturers to be unable to replenish their post-production inventories effectively.
In terms of prices, both input and output charges were slightly lower than those seen in May, even as respondents linked higher prices to an increase in material costs.
Optimism also increased in June when compared to the previous month, but S&P noted that the confidence degree was significantly below historical levels.
'The next couple of months will be important to gauge if the sector is able to return to growth rates seen in much of last year… (H)istorically muted business confidence suggests a more subdued path for the year ahead,' Baluch said.
Survey responses were collected in the second half of the month, taking into account responses from purchasing managers in a panel of around 400 manufacturers. The PMI is a weighted average of new orders, output, employment, suppliers' delivery times, and stocks of purchases.
The Philippine Statistics Authority (PSA) is scheduled to release official government figures on manufacturing for the month of June on August 7, 2025. — RSJ, GMA Integrated News
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