The Philippine manufacturing sector continued to expand in July, with modest growth driven by stronger demand and offsetting rising input costs.
The S&P Global Philippines Manufacturing Purchasing Managers' Index (PMI) increased to 51.8 in July, up from 50.9 in June, marking the third consecutive month of expansion.
A PMI reading above 50 indicates an improvement in operating conditions from the previous month, while a reading below 50 signals a deterioration.
Manufacturing output and new orders both rose at faster rates in July, supported by stronger client demand and new business wins, according to latest data.
Philippine manufacturers also increased purchasing activity amid higher production requirements, as they sought to meet the growing demand for their products.
However, the sector still faces challenges from inflationary pressures, with costs driven up by the ongoing war in the Middle East, which firms then pass on to customers through higher charges for goods.
