Manufacturing gauge reaches 53-month peak

The Purchasing Managers Index, a gauge of manufacturing sector, hit a 53-month peak at 54.3 in April from 53.2 in March, suggesting the sustained growth of the sector as the government reopened more industries.

The PMI, published by global provider IHS Markit, considers new orders, output, employment, suppliers’ delivery time and stocks. A reading above 50 signals growth.

The Department of Trade and Industry said the latest reading was consistent with the expansion of the manufacturing sector and the increase in operating capacity of the manufacturers, as outputs and new orders further rose amid the pandemic.

“We continue to be optimistic with the country now progressing towards economic recovery as proven by the expansion in our manufacturing sector. The continuous growth of our manufacturing sector was propelled by the more economic sectors reopening, as well as the de-escalation of more areas in the country to Alert Levels 1 and 2 that led to eased mobility, which reached its highest in ASEAN at 96 percent compared to pre-pandemic levels,” said Trade Secretary Ramon Lopez.

Employment rate also stabilized after two years in pandemic, while business confidence outlook was at a four-month high. Transport mobility jumped to 96 percent of pre-pandemic levels in April 2022, the highest in ASEAN region.

Lopez said the PMI and mobility rate were expected to continue to grow in the coming months.

“We expect both mobility and manufacturing PMI to stay above 90 percent and 50, respectively, in May as restrictions are lessened and vaccination drive intensified, as well as the ongoing election-related economic activities. We are hopeful that these gains will not be outweighed by the downside from Russia-Ukraine conflict,” he said.