Solid domestic demand boosts Philippine manufacturing in November

Solid domestic demand boosts Philippine manufacturing in November

Solid domestic demand boosts Philippine manufacturing in November

A man works on the production line at the Toyota factory in Derby, central England, March 7, 2011.

Financial information firm IHS Markit Ltd. said its purchasing managers index for the manufacturing industry, jumped to 58.2 in November, up from the upward-revised reading of 56.6 a month earlier.

"In the fourth quarter, the economy is likely to maintain the stability observed since the start of the second half of the year". The rise marked the highest point in over four years, in another positive sign amid the Brexit uncertainty.

Manufacturers said domestic demand and a rebound in the energy sector helped drive new orders in November.

Rob Dobson of IHS Markit, which compiles the PMI survey, told media that manufacturing now seemed to be rising at a quarterly rate of 2 per cent "providing a real boost to the pace of broader economic expansion".

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A broadening of price pressures represented a downside in the latest PMI, with factories facing extra costs from supply chain bottlenecks, overtaking sterling's weakness as the main driver of price increases.

Meanwhile, business expectations about future output remained high, with the Future Output Index recovering from a record low in October to a three-month high as companies grew more confident about the outlook, Nikkei reported.

While Friday's PMI will make welcome reading for policymakers, Britain's economy relies far more on the services sector, which is almost eight times larger than manufacturing. Improved production processes and sub-contracting also contributed.

India's factory activity quickened in November at the fastest pace since just before the government's surprise cash clampdown late past year, driven by a surge in new orders, a business survey found.

"The PMI suggests the strong growth momentum in the Filipino economy has some way to go", Aw said.

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