Manila: The country’s manufacturing sector, as reflected by the purchasing managers’ index (PMI), continued to grow in October this year, SandP Global said on Monday. The SandP Global Philippines Manufacturing PMI posted a score of 52.9 last month, indicating an improvement in the sector’s health for the 14th straight month.

According to Philippines News Agency, while the index eased from the 53.7 recorded in September, “it was the second-highest reading since January 2023, and indicated a historically solid improvement in the sector.” SandP Global Market Intelligence economist Maryam Baluch highlighted the robust expansion in new orders, allowing goods producers to raise their output.

“More encouragingly, employment became the real stand-out this month, with the rate of job creation the strongest in over seven years,” Baluch noted. However, manufacturing firms revealed supply-side challenges, with material shortages resulting in longer delivery times and cooling buying activity.

The survey also pointed ou
t that rising input prices were driven by these supply-side challenges and exacerbated by the depreciation of the peso against the dollar. Despite these issues, firms remain optimistic, with more than half of respondents anticipating expansion in the year ahead. The survey showed that manufacturers are hopeful that current demand trends will be sustained in the coming 12 months, supporting production growth.

SandP Global reported that the level of confidence improved to a five-month high in October, reflecting a positive outlook despite ongoing challenges.