The manufacturing sector in the Philippines moved into expansion territory in January, the latest survey from Markit Economics revealed on Monday with a seasonally adjusted PMI score of 52.5.
That’s up from 49.2 in December and it moves above the boom-or-bust line of 50 that separates expansion from contraction.
Individually, New orders rose solidly and at the joint-fastest rate since July 2019. Respondents mentioned that a recovery in domestic demand drove the latest uptick. Orders from overseas contracted however, with strict pandemic restrictions in key export destinations often attributed to the fall.
Despite higher levels of production, restructuring efforts and voluntary resignations led to further cuts in payroll numbers. That said, the rate of decline eased to the softest in the current eleven-month sequence of contraction.