Philippine factory activity returns to growth in May, PMI shows

PHILIPPINE factory activity returned to expansion in May as stronger domestic demand lifted output and new orders, even as the Middle East conflict continues to affect supply chains and costs, S&P Global said on Monday.

The Philippines Manufacturing Purchasing Managers’ Index (PMI) rose to 50.8 in May from 48.3 in April. A PMI reading above 50 indicates an improvement in operating conditions from the previous month, while a reading below 50 signals deterioration.

“The overall expansion was driven by a fresh rise in new orders, which followed a sharp reduction in April. Improved client demand and new customer wins were said to have driven growth,” S&P Global said.

However, last month’s rebound was “only modest and historically subdued,” it said:

Maryam Baluch, an economist at S&P Global Market Intelligence, said despite the renewed growth, “supply-chain disruption and cost pressures worsened as the Middle East conflict entered its third month.” — Justine Irish DP. Tabile