Pascual: Higher PMI boosts pricing

THE rise in the country's manufacturing purchasing managers' index (PMI) demonstrates the manufacturing sector's resilience, enabling manufacturers to price their products more competitively, a senior trade official said.

Trade Secretary Alfredo Pascual said that the April 2024 PMI aligned with the government's policies aimed at industrial growth. Latest report from S&P Global Market Intelligence showed that domestic manufacturing conditions rose to 52.2 in April from the 50.9 of March.

«This environment enables our manufacturers to price their products more competitively, enhancing their domestic and international market position,» Pascual said in a statement on Thursday.

DEPARTMENT of Trade and Industry (DTI) Secretary Alfredo Pascual. PHOTO BY J. GERARD SEGUIA

He attributed the positive performance to government policies supporting industrial growth, adding that there is an indication that inflationary pressures remained subdued in April. The latter provides further optimism for manufacturers.

S&P Global cited the growth in new orders to be the fastest since October. «The acceleration in new order volumes, alongside a notable increase in export orders, highlights the competitiveness of our manufacturing sector,» the trade chief said.

It also mentioned increased demand and production expansion as drivers to raise purchases and inventories of firms. Additionally, employment also improved during the survey period.

Advertisement

Purchasing growth surged to its highest level in nine months, while the accumulation of stocks pre- and post-production escalated, reportedly reaching the swiftest rates in 12 and 17 months, respectively.

Economists noted that the Filipino manufacturing sector sustained its growth momentum in April, following a strong first quarter.

Positive trends in hiring, purchasing activity and stock building, driven by increasing production requirements, were also highlighted. S&P also cited the current inflation environment, «which also is likely to help support growth in the coming months as firms were able to price more competitively.»

«At the Department of Trade and Industry, we are committed to supporting the manufacturing sector through strategic