At the 5th General Membership Meeting and Ratification of By-laws organized by the Philippine Institute for Supply Management (PISM) held at the Bayanihan Center, United Laboratories Inc., Dr. Nick Fontanilla, Managing Director of ASCEND, Inc., shared insights and foresights on the Philippine economy based on the latest PMI Philippines reading.
PMI is a leading economic indicator reported at the beginning of each month. It tracks economic trends and gives a timely report on whether the economy expanded or contracted last month as compared to the previous month. There are 32 countries where PMI is conducted. Of this total, seven are in Asia, the Philippines being one of them. PMI monthly results are used by executives as guideline for decision making and policy formulation. PMI Philippines started in July 2008. PMI Philippines January is now on its 44th reading.
PMI is a leading economic indicator reported at the beginning of each month. It tracks economic trends and gives a timely report on whether the economy expanded or contracted last month as compared to the previous month. There are 32 countries where PMI is conducted. Of this total, seven are in Asia, the Philippines being one of them. PMI monthly results are used by executives as guideline for decision making and policy formulation. PMI Philippines started in July 2008. PMI Philippines January is now on its 44th reading.
Dr. Fontanilla presented the latest Purchasing Managers’ Index which measured the direction of the economy in January 2012 as compared to December 20122. As reported, there was a slight upturn in the January 2012 Index from 53.6 to 55.1, 1.5 point higher than the previous month. An index above the growth threshold of 50 indicates expansion. An index below the growth threshold of 50 indicates contraction. The January 2012 index is also higher than the index in January 2011. According to Dr. Fontanilla, the January data and previous PMI tracking data (from July 2008) plus key market developments suggest a vibrant economy in 2012.
