Solid domestic demand boosts Philippine manufacturing in November

PMI rises to 13-month high of 52.6 in November

Solid domestic demand boosts Philippine manufacturing in November

This was the highest level since August 2013 and the tenth best reading in the survey's 26-year history.

Industrial purchasing managers' index (PMI) data for the bloc rose to 60.1 points in November, up on earlier estimates for the month and on the 58.5 level recorded for October, the highest rating since April 2000.

A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction.

Growth in China's manufacturing sector continued in November albeit at a slower pace than in the previous month with only modest increases in output.

Solid domestic demand boosts Philippine manufacturing in November

"Growth in output and new orders picked up to the fastest since October 2016, reportedly supported by reductions in GST rates and stronger underlying demand conditions", said Aashna Dodhia, Economist at IHS Markit and author of the report. On its current course, manufacturing production is rising at a quarterly rate approaching 2%, providing a real boost to the pace of broader economic expansion.

Manufacturers said domestic demand and a rebound in the energy sector helped drive new orders in November.

Samuel Tombs, chief United Kingdom economist at Pantheon Macroeconomics, said: "UK manufacturers are being swept along by the Eurozone's resurgence - the single currency area's PMI increased to 60.1, from 58.5 in October - but remain cautious about the outlook". On past form, the output balance now is consistent with quarter-on-quarter growth in manufacturing output of about 1.2%.

"For the most part, the manufacturing sector remained stable in November, although some signs of weakness emerged", said Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group.

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