Monday, January 2

Annual Comparisons of the Purchasing Managers' Index


Shown below is the annual comparison of the Purchasing Managers' Index (PMI) Manufacturing from July 2008 to November 2011. The Philippine Institute of Supply Management (PISM), in partnership with its advocacy arm Society of Fellows in Supply Management (SOFSM) and The Asian Centre for Enterprise Development (ASCEND), conducts the Purchasing Managers' Index Survey in the Philippines. PMI Manufacturing Philippines is on its 41st reading as of November 2011.


The trend since April 2009 shows stable and consistent economic growth. The pattern suggests that manufacturing (and economic) activities are likely to remain stable and in a growth mode. PMI Philippines registered indices above the economic threshold of 50 in 34 out 41 monthly readings. An index below neutral line indicates a contraction in the economy while an index above indicates overall expansion in the economy.

The dip in the last quarter of 2008 and first quarter of 2009 is caused by the lethargic growth of industries with raw materials coming outside the Philippines and low demand in industries exporting their finished goods. While the slight fall in April 2009 was caused by the unlikely performance of companies that have production inputs dependent in Japan.

Nonetheless, the established trend is that the Philippine economy has been in a growth mode for more than two years. Some were seasonally engendered like the usual dip in August or December and the wild upturn in October and November.

The question now is: What will December look like for the Manufacturing Industry in the Philippines?

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