Factory output still in the red in May, but some lost ground recovered as lockdowns ease

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.

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