Factory conditions post modest improvement in December !-- -- Czeriza Valencia (
Alongside the growth in new orders, employment rose marginally.
The headline PMI provides a quick overview of the health of the manufacturing sector based on the weighted average of five indicators: new orders (30 percent weight), output (25 percent weight), job creation (20 percent), supplier delivery times (15 percent), and inventories (10 percent) Data for the index was obtained from a sample pool of 400 manufacturers. While stronger sales and new orders helped businesses expand operations, some firms said delays in input deliveries and difficulties in sourcing raw materials curtailed production.
Traffic issues were again cited as a key factor affecting supplier delivery times, alongside typhoons and congestion at the
To cope with increased production, firms increased input buying although at a slower pace. Softer demand for inputs contributed to a slower growth in input price inflation.
The weak growth in December caused businesses to be less optimistic this year, with the degree of positivity one of the weakest in survey history. "Most notably for manufacturers though are clear supply-side issues that are restricting output.
Growing road and port congestion, particularly in
"Nevertheless, for the moment, production is being limited, and may remain so until these issues have been addressed," he added. The growth in the Philippine manufacturing sector bucked the deterioration trend in
This marks the seventh consecutive month of deterioration in the health of the
Business sentiment across the region, however, remained positive for the coming year as businesses remain confident output will increase this year. "2019's overall performance has been subdued, with the average PMI reading (49.6) down from that seen in 2018 (50.6).
In order for the
© Pakistan Press International, source