After a 10-month slump since the onset of the pandemic, the local manufacturing sector recovered in the first month of 2021 based on a study by the IHS Markit on the manufacturing purchasing managers’ index (PMI).
The country’s manufacturing PMI in January reached 52.5, surpassing the pre-pandemic index of 52.3 in February 2020. It is also the highest score for the past 25 months.
This indicated a rebound in operating conditions across Philippine-based manufacturers, IHS Markit economist Shreeya Patel said
PMI reflects the condition of the local manufacturing sector measuring new orders, inventory levels, production supplier deliveries, and employment activities.
The neutral score is 50. Readings above 50 reflect the improvement of the sector and below the neutral score translate to deterioration.
“Production volumes rose solidly, while renewed growth in new orders indicated an overall improvement in demand conditions. An increase in purchasing activity and stocked inventories was also a positive sign that manufacturing companies expect demand to grow over the coming months,” Patel said.