November has brought some good statistics on the Philippines manufacturing industry.
Based on S&P Global Statistics, the country’s Purchasing Managers’ Index (PMI) has peaked at 53.8, reaching a 29-month high record.
What does Good PMI indicate?
These good PMI numbers indicate that there is a huge activity going on in manufacturing in our country. Since then the demand for manufacturing has continued for the last 15 months.
According to economist Maryam Baluch, the increase in PMI in the Philippines is a preparation for greater sales in the upcoming months. This suggests that the Filipinos have a strong demand for its products.
In addition to this, reports from S&P said that the increase in purchasing activity in November has also put a rise in the current production of the manufacturers.
With these demands, the demand for the workforce also increases. Trends like this create opportunities for the community since more demands also equate to massive hiring in the manufacturing sector.
The Philippines has surpassed its neighboring countries in PMI
In November, the Philippines PMI has also overtaken the PMI of its neighboring ASEAN countries, such as Vietnam (50.8), Thailand (50.2), Myanmar (49.8), Indonesia (49.6), and Malaysia (49.2).
It is also worth mentioning that the Philippines breaks the average for the 5 mentioned countries, which is 50.8.
The Supply Chain Still Facing Challenges
Despite the growth and positive number in PMI, the supply chain is still affected due to the hit of multiple typhoons in November.
Adding to this challenge is the pressure of inflation that strikes the country is also a barrier in the manufacturing sector. Based on the data on Philstar, the inflation rose to 2.3 percent last October, from 1.9 percent in September. This is resulting in food prices also increasing.
This negativity will not affect the optimistic view of the manufacturing sector and the banks about the future output of Philippines manufacturing activity. There are high hopes that the increasing demand will provide will still provide a boost in the sector.
This is supported by the positive sentiment of the manufacturers, which has also been highlighted since 2023.
To help battle the inflation rate, Bangko Sentral ng Pilipinas (BPS) has a plan to implement rate cuts. As per Governor Remolona Jr, it should be on the December Policy review, or to be set on the next meetings.
Since the easing cycle in August, the BSP has already implemented cut rates by 50 points basis points. This brings the benchmark to 6%.
Wrapping up
The recent surge in the Philippines’ PMI is a clear sign of growth and resilience in the manufacturing sector.
It’s inspiring to see that our country is outpacing its ASEAN neighbors, showcasing the strength and determination of Filipino industries. With demand growing, production ramping up, and job opportunities expanding, the future looks promising for both businesses and the workforce.
However, challenges like inflation and supply chain disruptions remind us that progress requires continuous effort and smart strategies.
How can we, as a community, support this momentum and ensure sustainable growth for everyone? These positive trends in manufacturing hint at a brighter economic horizon, one where every Filipino stands to benefit.
Source:
https://www.philstar.com/business/2024/12/03/2404565/factory-activity-hits-29-month-high-november
www.bworldonline.com/top-stories/2024/12/03/638793/factory-activity-expands-in-nov/
