Philippine factory activity declines sharply in November

Philippine factory activity experienced its sharpest decline in over four years in November, with the Manufacturing Purchasing Managers' Index (PMI) falling to 47.4, reflecting the strongest deterioration since August 2021.

This downturn marks a significant reversal from the 50.1 recorded in October, indicating a deterioration in operating conditions for manufacturers.

The contraction was primarily driven by substantial drops in output and new orders, the fastest since August 2021, due to weak customer demand and weather disruptions.

Exports, purchasing activity, and employment also decreased, reflecting wider challenges within the manufacturing sector.

The Philippines was the only country in the Association of Southeast Asian Nations (ASEAN) that saw a deterioration in manufacturing activity in November, as the ASEAN PMI rose.

Despite these challenges, manufacturers expressed cautious optimism for the next 12 months, anticipating growth due to new projects and improved economic conditions.

Input price inflation eased to a four-month low, while output prices posted a slight increase.