PHL factory performance still weak

By Cai U. Ordinario @caiordinario

T he report stated the country’s PMI remained at 50.9, marking the 7th consecutive month in this level and the weakest improvement in business conditions since July 2020.

T he outlook may still be optimistic, but S&P said global headwinds remain the biggest threat to manufacturing growth in the next 12 months.

“ Growth across the Filipino manufacturing factor slowed as the June PMI index reading signaled the weakest improvement in the health of the sector since July 2020,” Maryam Baluch, Economist at S&P Global Market Intelligence, said. Going forward, the sector remains optimistic of growth in the coming 12 months. However, global headwinds could dampen the outlook for manufacturers in the Philippines,” she added.

T he report stated that the manufacturing sector still grew due to higher production and factory orders but there were factories that reported slowing demand for certain products.

T he slowing inflation also affected the growth of manufacturing output from the value perspective. The slower inflation prompted the Bangko Sentral ng Pilipinas to maintain policy rates for the second time in June.

“ The muted headline figure reflected softer rates of expansion across both output and new orders, while manufacturing employment registered a fresh reduction,” Baluch said.

Meanwhile, rates of input price and output charge inflation slowed and were the softest recorded in over two-and-a-half years,” she added.

NEW BSP CHIEF: FLUENT IN FILIPINO, BASKETBALL–SAVVY

THE new Bangko Sentral ng Pilipinas (BSP) governor is as Filipino as they come from his use of the mother tongue to making basketball references in his first official speech at the central bank.

O n Monday, Eli M. Remolona Jr. officially took over the reins of the central bank. He is the 7th BSP Governor since the enactment of the New Central Bank Act in 1993.

R emolona spent 14 years at the Federal Reserve Bank of New York and 19 years at the Bank for International Settlements in Switzerland and Hong Kong. He also taught in the United States and Malaysia, and earned his PhD in economics from Stanford University.

I n his remarks on taking the helm of central bank, Remolona said he would focus on two things: continuity of the good done in the past; and bettering the work.

“ Sa unang araw ko naman bilang

BSP Governor, may dalawang puntos akong nais ibahagi. Ang unang puntos po ay PAGPAPATULOY Together we must build on the progress we have already made,” Remolona said.

“Ang pangalawang puntos po ay PAGPAPABUTI. I know we’re all eager to work even harder. I know we have what it takes to do even better—especially if we work together,” he added.

R emolona said the banking system has remained strong and the country’s capital and liquidity are “more than adequate.” He said this has made Philippine banks a source of strength for the economy as it recovered from the pandemic.

T his good performance, Remolona said, should continue but the BSP should also strive to do better. To illustrate his point, he recalled the recent National Basketball Association (NBA) finals which was won by the Denver Nuggets. See “BSP Chief,” A2

By Ma. Stella F. Arnaldo @akosistellaBM Special to the BusinessMirror

THE Department of Tourism (DOT) is still considering paying its advertising agency DDB Philippines Inc. despite the cancellation of its P50-million contract, after the rider video to its new tourism slogan “Love the Philippines” was found to have used stock footage of scenes abroad instead of those in the country.

I n a news statement on Monday, Tourism Secretary Christina Garcia Frasco said: “As DDB Philippines has publicly apologized, taken full responsibility, and ad - mitted in no uncertain terms, that non-original materials were used in their AVP [audio-visual production], reflecting an abject failure to comply with their obligation/s under the contract and a direct contravention with the DOT’s objectives for the enhanced tourism branding, the DOT hereby exercises its right to proceed with termination proceedings against its contract with DDB.” (See, “Stakeholders, TPB shut out of new tourism drive decision,” in the BusinessMirror , July 3, 2023.)

S he added, “The DOT shall exercise its right to forfeit performance security as a result of default in