The Philippines recorded the highest manufacturing purchasing managers index (PMI) among Southeast Asian countries in November this year, S&P Global reported Monday.

The country’s manufacturing PMI last month rose to 53.8 from a score of 52.9 in October. The manufacturing score last month was also the highest in 29 months.

"November saw the Filipino manufacturing sector ramping up production in anticipation of greater sales in the coming months. Hiring, purchasing activity and post- production inventories were also raised in preparation. New sales recorded further growth, as demand conditions continued to improve,” S&P Global Market Intelligence economist Maryam Baluch said.

The Philippines’ manufacturing PMI in November also exceeded the Association of Southeast Asian Nations (ASEAN) average of 50.8, and was higher than Vietnam’s and Thailand’s score of 50.8 and 50.2, respectively.

Indices above the neutral score 50 show improvement of factory activities while below 50 mean deterioration.

ASEAN countries that recorded PMI below the neutral score include Myanmar at 49.8, Indonesia at 49.6, and Malaysia at 49.2.

For the Philippines, S&P Global report showed that demand conditions increased for the 15th straight month. 

It added that the higher demand for Philippine-made products has driven growth in purchasing activity, inventory, output, new sales, and hiring.

“However, some supply-side challenges acted as headwinds, as adverse weather conditions resulting from the recent typhoons hitting the country and rising inflationary pressures make a difficult environment for manufacturers,’ Baluch added.

For the year ahead, optimism of manufacturers reached a 22-month high.

“Nonetheless, firms remained optimistic about future output, with hopes that improved demand trends and the upcoming election year will provide a boost to the sector,” the economist said.