PH production PMI still subdued in September: IHS Markit


According to data published by IHS Markit the UK's manufacturing PMI slipped from 56.9 to 55.9 in September, falling below expectations of a more modest drop to 56.4 as manufacturers come under pressure from rising input costs.

The Philippines' manufacturing Purchasing Managers' Index (PMI) for the month of September has slightly improved from August figure, but growth remains subdued. Any reading above 50 indicates growth. This is a little lower than the 56.7 from August, as growth slowed somewhat for September, but results for the sector are still above average, and both domestic and worldwide demand remains strong.

Meanwhile, the pace of job creation eased to the weakest since October 2016. Rising input prices led firms to increase their output charges in September for the first time in five months. Quantities of purchases increased amid reports of efforts to replenish stocks in line with forecasts of further improvements in demand. "Latest data indicated only a marginal rise in new orders from overseas, which was partly linked to weak demand from US clients".

Commenting on the latest index, David Johnson, founding director at Halo Financial, said: "The increase in exports at a six and a half year high is a positive development for UK Manufacturing - one of the benefits of a weaker Pound". Currency weakness was reportedly the main reason leading to higher input costs (the rupiah being under pressure - like other emerging market currencies - amid renewed USA dollar strength).

"The rebound in the Greek manufacturing sector continued at the end of the third quarter", said IHS Markit economist Alex Gill.

The survey mentioned that the increasing costs of raw materials affected the production plans of firms.

Malaysian manufacturers continued to raise their staffing levels despite the ongoing decline in new work.

Non-metallic mineral products (75.5 points) hit a new record high, reflecting the strength of demand for building-related products. "This, coupled with price inflation (both commodity and import costs) remains a concern".

"This appears to be reflected in the latest PMI, which, while moderately below August's result, still shows UK Manufacturing to be performing strongly".