dadu110 @ vonza383 PHL factories boost December output; PMI at 54.3

LOCAL manufacturing firms ended 2024 on a “strong note” as the slowdown in commodity prices helped boost their output in December, according to S&P Global Market Intelligence.

Based on the latest S&P Global Philippines Manufacturing Purchasing Manager’s Index (PMI), the country posted a composite score of 54.3 in December 2024, higher than the 53.8 score in November 2024.

Apart from higher demand, as indicated by new orders and higher output, S&P Global Market Intelligence economist Maryam Baluch also noted the improvement in input prices, which slowed to a rate lower than the historical average.

“Firms also expanded their purchasing activity to meet production requirements.

December highlighted a moderation in inflationary pressures, marking a shift from the spike observed in November. In fact, cost burdens and output charges rose at historically muted rates,” Baluch said.

Job creation dips

However, there was a slight decline in job creation in the manufacturing sector. After three months of continuous job creation, the data showed companies made minor reductions in their staffing levels.

“While production efficiency allowed manufacturers to stay on top of tasks at hand, it also led to a slight drop in employment, thereby ending a three-month streak of job creation. However, this could be a temporary blip, especially if demand remains resilient as anticipated throughout 2025,” Baluch said.

S&P Global Market Intelligence noted a renewed increase in demand from international markets. This marked the first increase in new export orders in the past five months.