Purchasing Managers’ Index (PMI) compiled by the Central Bank in June reported a mixed performance, with a decline in the manufacturing sector and a gain in the services sector.
It said Manufacturing Sector PMI recorded 56.1 in June, which is a decrease of 1.8 index points compared to May 2017. This indicates that the manufacturing activities expanded, albeit at a slower rate in June 2017, mainly due to the decrease in the New Orders and Production sub-indices which were partly influenced by the adverse weather conditions.
As a result, excessive stock levels were created and a marginal decline in the lengthening of the suppliers’ delivery time was experienced. However, the employment level improved, recovering from the contraction experienced in the previous month. Further, all the sub-indices of PMI recorded values above the neutral 50.0 threshold, signaling an overall expansion. Moreover, the expectation for activities indicates an improvement for the next three months.
Services sector PMI recorded 59.2 index points in June from 55.3 index points in May 2017. The acceleration in the Services sector was supported by New Businesses, Business Activity, Employment and Expectations for Activity. Backlogs of Work declined at a moderate pace compared to May 2017. The financial sector contributed to the acceleration in New Businesses through the adoption of technological advancement to serve their clientele.
An increase in business activity levels was reported, mainly in the health sector. The accommodation, food and beverage sector expects an increase in activity levels in the next three months due to anticipated growth in both domestic and foreign tourist activity. The Prices Charged index experienced no change in June compared to May 2017 in the absence of any festival demand. Meanwhile, Expectations on Labour Cost increased marginally in June 2017 due to the increase in the employment level.