Philippine factory activity returns to expansion in October

Philippine factory activity rebounded in October, with the Purchasing Managers' Index (PMI) rising to 50.1 from September's 49.9, indicating a return to expansion.

Despite the overall improvement, new orders and production output continued to decline for the second consecutive month.

Manufacturers attributed the lower output to adverse weather conditions and the end-of-life status for certain products.

Weak demand and clients placing orders on hold were cited as reasons for the decline in new orders.

Amid lower orders, manufacturing firms reduced their purchases, although delivery times for inputs lengthened to their longest in three months.

This marks the first time in over four years that output and new orders have failed to grow for two consecutive months, suggesting a recovery may depend on initiatives to boost consumer demand.