Philippine factory activity inched up slightly in October, as manufacturers reported improved business confidence for the next year, despite muted demand and production cuts.
A survey of around 400 companies showed the Philippines’ Purchasing Managers’ Index (PMI) picked up slightly to 50.1 from 49.9 in September, SandP Global said on Wednesday.
This kept the index above the 50-point threshold that separates growth from contraction.
The slight recovery came even as production and new orders remained weak amid sluggish demand, while export orders still have not recorded any growth for the second consecutive month.
‘A closer examination of the Philippines PMI data revealed a mixed picture in October. The two largest segments, new orders and output, indicated further declines,’ SandP Global Market Intelligence economist Maryam Baluch said.
‘On a more positive note, manufacturers grew more optimistic about their growth prospects for output in the coming year,’ she added.