PHL manufacturing PMI slips to 52.7 in Feb B A E. S J
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HE Philippine Manufacturing Purchasing Managers’ Index (PMI) slipped from January’s seven-month high of 53.5 to 52.7 in February, with port congestion, among others, weighing on vendor performance which is resulting in further deterioration, according to Standard & Poors (S&P) Global Market Intelligence. While the S&P Global noted that “solid demand” continues to drive growth across the Philippine manufacturing sector, it said February data did reveal some “areas of concerns.” “According to the latest PMI data, growth across the Filipino
manufacturing sector remained solid midway through the first quarter of 2023, albeit easing slightly from January,” Maryam Baluch, Economist at S&P Global Market Intelligence said. However, Baluch noted that ongoing supply chain concerns “continued to remain a drag on the sector,” adding that “supplier performance worsened further, and to a greater extent, as material scarcity, port congestion and difficult transportation conditions resulted in a further lengthening of average lead times.” With this, Baluch noted that higher prices at suppliers directly “fed into cost burdens, causing input price inflation to rise at a rapid and accelerated pace.”
Moreover, with production requirements increasing at a “softer” pace in February, employment fell slightly for the first time in three months, Baluch said. S&P Global said greater production requirements meant that firms also raised their purchasing activity, with input buying increasing for the sixth straight month. “Although sharper than the series average, February data signaled a softer rise in acquisitions of raw materials and semi-finished goods,” S&P Global added.
RCBC economist: Optimistic
MEANWHILE, Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael Ricafort said the country’s manufacturing per-
formance may have slowed monthon-month after accelerating for 3 months, to 52.7, but he said the February PMI is still in expansion mode or above 50, for the 18th straight month and for most months since 2021. The RCBC Chief Economist attributed his optimism to the reopening of the economy, particularly the resumption of nationwide face-to-face classes, among others. “The latest local manufacturing PMI gauge generally improved in recent months amid measures to further reopen the economy towards greater normalcy, such as the further improvement of local and foreign tourism in recent months S “PHL,” A
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Thursday, March 2, 2023 Vol. 18 No. 138
P. | | 7 DAYS A WEEK
3.35% TO P1.614T IN ’22
MEGA PLANT President Ferdinand Marcos Jr. and William Tiu Lim, Mega Global Corp. CEO, lead the ceremonial ribbon-cutting for the opening of the 35,818-square-meter food manufacturing plant on Maharlika Highway, Barangay San Antonio, Santo Tomas, Batangas, on Wednesday, March 1, 2023. Also in photo are Batangas
Gov. Hermilando Mandanas, Trade Secretary Alfredo Pascual and Mega Global Corp. COO Michelle Tiu Lim. President Marcos Jr. said the addition of the Mega Manufacturing Plant in Santo Tomas, Batangas, will help the government attain a 10-percent annual increase in approved investments in the agribusiness sector. Once fully operational, the plant is expected to create over 1,000 jobs and livelihood opportunities. Story in Companies, B1. NONIE REYES
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@jearcalas
HE Philippines’s budget deficit last year fell by 3.35 percent to P1.614 trillion from P1.67 trillion as total revenues of the national government outpaced its expenditures, the Bureau of the Treasury (BTr) said. With the decline, the national government’s budget deficit last year narrowed to 7.3 percent of the country’s GDP from 8.6 percent in 2021, according to the Treasury. Furthermore, the full-year budget deficit also fell within the national government’s target of P1.7 trillion ceiling. “The fiscal outturn was driven by revenue growth of 17.97 percent outpacing the 10.35-percent expansion in government spending,” the Treasury said in a statement on Wednesday. Given last year’s performance, Finance Secretary Benjamin E. Diokno on Wednesday said the national government is “on track” with its medium term fiscal framework target to slash the budget deficit to 3 percent of GDP by 2028. The national government collected P3.5 trillion of total revenues last year, nearly 18 percent higher than the P3 trillion it
earned in 2021, based on Treasury data. Treasury data showed that the national government surpassed its programmed revenue collection for 2022 which was pegged at P3.3 trillion. “Ninety-one percent [91 percent] or P3.2 trillion of the total was derived from tax revenues, exceeding the target by 2.57 percent and growing by 17.41 percent [year-on-year],” the Treasury said. “Non-tax collections comprised the balance of 9 percent while also registering a 23.74 percent [yearon-year] growth and surpassing the 2022 program by almost 98 percent or P160.7 billion,” the Treasury added. The Treasury said the national government’s revenue effort, which measures total collections against the country’s GDP, imS “B,” A
MARCOS: NO NEED FOR SPECIAL POWERS FOR ME B S P. M @sam_medenilla
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RESIDENT Ferdinand R. Marcos Jr. said on Wednesday he can curb high inflation and minimize its impact on consumers without getting special powers from Congress, as suggested by some leaders of the House of Representatives. In a chance interview with reporters after the launch of Halina’t Magtanim ng Prutas At Gulay, Kadiwa’y Yaman, Plants for Bountiful Barangays Movement (Hapag Kay PBBM) at the Rizal Park in Manila, Marcos said he already enough power to temper high inflation, which reached 8.7 percent in January, and is seen to breach 9 percent in February. “I already have the power to declare an emergency and to control the prices of commodities. So I don’t think there is any need for more than that, that is sufficient,” Marcos said. He attributed the rise in inflation to high fuel prices in the world market, which he admitted the government cannot do anything
about, and food prices. The President made the pronouncement after House Speaker Martin G. Romualdez, House Committee on Ways and Means Chairman Jose “Joey” Sarte Salceda and House Committee on Appropriations Senior Vice Chairperson Stella Luz Quimbo said they are open to providing Marcos special powers on Tuesday. Salceda noted his proposed special powers, which will last 18 months, will help address the “structural issues,” which cause high inflation such as hoarding, price gouging, and market abuse. It will also enable the President to provide loans and guarantees to suppliers of essential goods and mobilize uniformed personnel to expedite government programs.
Marcos, Anwar tackle trade, investment, security issues B S P. M
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EW trade and investment opportunities as well as peace and security topped the issues raised during the bilateral meeting of President Ferdi-
nand R. Marcos, Jr. and Malaysian Prime Minister Anwar Ibrahim on Wednesday. In their joint press conference, Marcos said he discussed the exC A
Food accessibility
BUT rather than using the special powers from Congress, Marcos said he is pushing for initiatives to boost local food production such as their Hapag Kay PBBM, which aims to increase the number of commuS “M,” A
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