Philippines PMI Regains Growth

Business conditions in the Philippines manufacturing sector improved further midway through the third quarter. While output growth softened, new business inflows picked up pace, and optimism improved, Nikkei reported. The Nikkei Philippines Manufacturing Purchasing Managers’ Index rose to 51.9 in August, up from 50.9 in July, indicating a modest improvement in the health of the sector. A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction. Survey details revealed that domestic markets were the primary driver of higher demand as export sales grew at a noticeably slower pace. Growth in export orders was the weakest in the current six-month period of expansion. “With the indicators of price gauges remaining elevated, the August survey sends a hawkish message to policymakers,” commented Bernard Aw, principal economist at IHS Markit, which compiles the survey. Meanwhile, the Philippine economic growth is expected to remain strong at “close to 6.8%” this year and will be driven by the increased spending on infrastructure, Finance Secretary Carlos Dominguez III said.