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
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