The country's manufacturing sector continued to grow in February but at a softer pace than the recorded expansion in January, S&P Global said.

In a report released Monday, S&P said the Philippine Manufacturing Purchasing Managers' Index (PMI) eased to 51 in February from 52.3 in January.

PMI of above 50 indicates improvement of the sector while below the neutral score reflects deterioration.

"Robust growth observed from the end of the previous year into the beginning of this year waned in February, as the latest survey data indicated slower expansions in output and new orders," said S&P Global Market Intelligence economist Maryam Baluch.

The report however noted that despite the slight cooldown in growth in new orders and moderated output, manufacturers raised their employment levels for the first time in three months.

"Meanwhile, inflationary pressures eased, thus suggesting that the central bank will continue to proceed with a loosening of its monetary policy. This could in turn boost somewhat weakened business confidence and support further new order growth," said Baluch.

The report said that looking ahead, manufacturers remained optimistic about the outlook for production over the coming 12 months.

Firms expressed hope that demand trends would continue to improve, and that the upcoming election would provide an additional boost.

PNA PHOTO