Manufacturing activity posts slower growth in Sept

MANILA, Philippines – Manufacturing activity posted a slower growth in September from the previous month, the latest Purchasing Managers’ Index (PMI) of the All-Asian Centre for Enterprise Development Inc. (ASCEND) showed.

A research note from ASCEND showed that the PMI index for manufacturing was down by 0.35 index points to 54.09 in September from the previous month.

“Although slightly lower than the index in August, this month’s index indicates steady month-on-month expansion of the economy in 2012,” ASCEND said.

An index above 50 suggests economic expansion while an index below 50 reflects a contraction.

Four of the five variables making up the PMI for manufacturing, decreased from last month. These are new orders, production, employment and inventories.

Supplier deliveries, however, increased in September compared to a month ago.

Of the 351 supply managers asked about the performance of their companies in September as compared to the previous month, 57.9 percent said conditions remained the same, while 30.3 percent said conditions improved.

The remaining 11.8 percent said they experienced a decline in their business activities.

The PMI index for wholesale and retail, meanwhile, rose at a slightly faster pace of 58.70 in September from 57.45 in August.”

Both retail and wholesale sectors expanded from last month posting performances above the growth threshold,” said ASCEND.

Four of the five variables making up the PMI for retail and wholesale such as purchases, sales revenues, supplier deliveries and inventories posted increases in September from the previous month.

Employment, however, decreased month-on-month.

The PMI for services also rose to 61.35 in September from 60.71 in August.

ASCEND said business activity, new orders and average operating costs improved in September from the previous month.

The three other variables: outstanding business, price charge and employment, however, decreased in September compared to August.

In terms of sectoral trend, ASCEND said five out of eight sectors: real estate, information and communication services, banking and financial activities, transportation, as well as business and knowledge processing posted an increase in September from last month. –Louella D. Desiderio (The Philippine Star)