Local factory output continued to sag in May, but the contraction was milder and production is now showing signs of stabilization as fresh lockdowns ease.
The Philippines’ purchasing managers’ index, a measure of factory output, rose to 49.9 last month from 49 in April based on results of a monthly survey of around 400 companies released June 1 by IHS Markit, an information provider from the United Kingdom.
The reading is still below the 50-mark separating expansion from contraction, but an economist at IHS Markit said domestic factories’ performance in May was still good news.
The economist added, “A surge in COVID-19 cases and ECQ measures last month forced the Filipino economy back into contraction territory. May PMI data will therefore be welcomed as it revealed a swift movement towards stabilization with some businesses already resuming their operations.”
Companies said supply chain pressures remained evident.