Producers hit 3-year low input price inflation rate in March

Inflation has started to slow down last December. (Pixabay Photo)

MANILA — Manufacturing firms recorded the lowest rate of input price inflation in over three years in March, the IHS Markit Manufacturing Purchasing Managers’ Index (PMI) reported Monday.

“[M]anagers will be pleased with reports of even softer price pressures, which should boost profit margins,” IHS Markit economist David Owen said.

In 2018, manufacturers were challenged by rising inflation rate, putting pressure on their input prices. Inflation has started to slow down last December.

Moreover, the Philippines’ manufacturing sector recorded growth last month at 51.5. However, this is lower than February’s index of 51.9.

“Slowing output growth and a comparably modest rise in new business hampered manufacturers in March, with PMI sliding for the fourth month running,” Owen said.

“Port congestion at Manila continues to increase lead times and reduce raw material supply, and will likely harm exports if the problem is not contained,” he added.

Among its Southeast Asian neighbors, the country’s manufacturing PMI was behind Myanmar and Vietnam with scores of 52.4 and 51.9, respectively, but higher than the indices of Indonesia, Thailand, Singapore, and Malaysia.

Indices of 50 and above represent growth in the industry, while scores below 50 show deterioration.

The IHS Markit survey reported that new order growth remained solid last month, with customers’ upbeat demand particularly in the construction sector.

On the other hand, new export orders, as well as hiring activity, slightly declined in March.

Meanwhile, manufacturing firms’ outlook dropped to a record-low last month as they expressed doubts over output performance this year.