Factory activity back to expansion mode

The Philippine manufacturing sector returned to expansion territory in October, reflecting stable operating conditions, despite declines in new orders and output.

- By LOUELLA DESIDERIO

Photo shows workers on the assembly line of a canned goods factory.

S&P Global said in a statement yesterday that the Philippines’ manufacturing purchasing managers’ index (PMI) stood at 50.1 in October, up slightly from the previous month’s 49.9.

The PMI, which is used to track manufacturing performance, is generated from a survey of around 400 manufacturers and takes into account new orders, output, employment, suppliers’ delivery times and stocks of purchases.

An above-50 PMI reading indicates an increase compared to the previous month, while a reading below 50 denotes a contraction.

S&P Global said the latest PMI reading masked declines in both output and new orders.