Factory activity returns to growth

Philippine manufacturing activity eked out a marginal expansion in December as domestic demand recovered, providing reprieve for the sector battered by a months-long downturn and an escalating corruption probe into infrastructure projects.

- By RICARDO M. AUSTRIA

The S&P Global manufacturing purchasing managers’ index rose to 50.2 in the final month of last year from 47.4 in November, according to a report released on Friday, January 2.

While the reading sits just above the 50-point threshold that separates growth from contraction, it marks the first improvement in operating conditions since August. The rebound follows November’s reading, which represented the sharpest deterioration in the sector’s health in more than four years.

The recovery was driven primarily by a renewed intake of new work, ending a three-month streak of declining orders.