-- Philippine manufacturing turned contractionary in April as the war in the Middle East reduced buying activity, new orders, and staffing numbers.
S&P Global's Manufacturing Purchasing Managers' Index for the Philippines posted 48.3 in April compared with an expansion of 51.3 in March.
A reading of above 50 denotes expansion, while a reading below 50 means a contraction.
The indicator fell to negative territory for the first time since November due to a decline in new orders.
New export orders plunged to their steepest since the middle of 2020 amid closures of trade routes, which caused shipping halts, causing consumers to hesitate, S&P said.
Deteriorating export market demand also dragged down total new sales, S&P Global Market Intelligence economist Maryam Baluch said.
"The decline in total new sales led Filipino manufacturers to see a stagnation in production levels in April," the debt watcher said in its report.
Exporters have also reduced their working days to as short as three days per week from six on a shortage orders in the garment, food, handicrafts and furniture sectors, The Philippine Star reported April 16, citing a survey by the Philippine Exporters Confederation.
Staffing levels slipped due to "modest" job cuts during the month, according to S&P.
Philippine manufacturers have turned to inventory to keep up with production requirements amid a decline in new orders and an increase in input and shipping prices, S&P said.
Despite the shortfalls, business confidence rose to a 17-month high as investors are bullish about a growing client base and improvements in underlying demand trends, the debt watcher said.