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Published: Sat, December 02, 2017
Economy | By Melissa Porter

Solid domestic demand boosts Philippine manufacturing in November

Solid domestic demand boosts Philippine manufacturing in November

China's official manufacturing purchasing managers index (PMI) came in at 51.8 in November, accelerating from 51.6 in the previous month, according to the National Bureau of Statistics (NBS), which released the data jointly with government-linked industry group the China Federation of Logistics and Purchasing.

The Philippines' manufacturing PMI rose to its highest so far this year in November, an IHS Markit/Nikkei survey found, buoyed by solid domestic demand.

A broadening of price pressures represented a downside in the latest PMI, with factories facing extra costs from supply chain bottlenecks, overtaking sterling's weakness as the main driver of price increases.

However, the weaker pound has helped many manufacturers to compete in export markets.

Rob Dobson of IHS Markit, which compiles the PMI survey, told media that manufacturing now seemed to be rising at a quarterly rate of 2 per cent "providing a real boost to the pace of broader economic expansion".

While Friday's PMI will make welcome reading for policymakers, Britain's economy relies far more on the services sector, which is almost eight times larger than manufacturing.

The growth comes despite grades to the UK's economic forecast both by its own Office for Budget Responsibility and the European Commission.

Official figures on British manufacturing, which painted a gloomier view than the PMI surveys for much of this year, have also now started to show improvement.

Survey data showed production had expanded at the fastest rate since May's 54.3, supported by the largest rise in new orders recorded in a year.

"Business confidence [has] remained elevated, with expectations of new order growth and improving economic conditions in export markets supporting optimism that output will increase over the coming year", Philip O'Sullivan, economist with Investec, said.

In response to greater production demand, the survey found that firms had raised staffing levels for a second month running in November.

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