The Philippines' manufacturing sector lost momentum in March as the war in the Middle East weighed on activity, S&P Global said in its monthly purchasing managers' index report Wednesday.
The S&P Global Philippines Manufacturing PMI ticked down to a
three-month low of 51.3 in March after settling at 54.6 in the month prior.
A reading over 50 indicates expansion in activity.
Filipino manufacturers were exposed to shocks in oil and fuel prices given the country's reliance on supply from the Gulf countries, leading to deterioration in vendor performance, S&P Global said.
Manufacturers saw a loss of momentum in new order growth during the month, stemming largely from customer uncertainty amid the war in the Middle East, according to the report.
"The duration and intensity of the war will directly impact the sector's trajectory in the coming months, as inflationary pressures constrain sales and pricing power," S&P Global Economist Maryam Baluch said.
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