Philippines' manufacturing PMI slows to 52.8 in July

It’s the lowest reading since January 2017.

The Philippines recorded a Manufacturing Purchasing Managers' Index (PMI) of 52.8 in July, down from 53.9 in June, according to Nikkei Philippines.

According to a release, demand softened in July, although the growth in business inflows remained stable, thanks to marketing activity and higher demand for products like electronics.

Nikkei said the martial law in Mindanao, southern Philippines also affected sales in the country.

This also reflected in the production, wherein output growth became the weakest recorded amount. As a result, employment growth was slower in July after acceleration in the previous two months.

IHS Markit economist Bernard Aw said, “The Philippines manufacturing economy started the third quarter on a softer note but the slowdown is likely to be short-lived. PMI survey data showed that while growth in output and new orders remained solid, both slowed from June. However, business optimism remained elevated, suggesting that companies expect the pullback in business activity to be transient."