Manufacturing PMI picks up in Sept. but series head south

Saturday, 15 October 2016 00:00 - - {{hitsCtrl.values.hits}}

Central Bank says overall data indicates improvement over next three months

Services and manufacturing decided to head in opposite directions in September with the PMI of the latter increasing 4.2 index points to 57.7 in September from 53.5 in August, while services sector PMI recorded 57.7 index points in September from 61.2 index points for the same period, the Central Bank said in a statement yesterday.

The Manufacturing Sector PMI was 57.7 in September which is an increase of 4.2 index points from 53.5 in August 2016. The increase in September was fuelled by the improvements observed in New Orders and Production sub-indices, the Central Bank said.

The New Orders and Production sub-indices of manufacturing sector PMI increased compared to the previous month while the Stock of Purchases index remained unchanged. However, the Employment and Suppliers’ Delivery time sub-indices decreased compared to the previous month. “Overall data points to an expansion where all the sub indices apart from Suppliers’ Delivery Time index which is neutral, are above the 50.0 threshold. The expectations for activities indicate an improvement for the next three months,” the statement said.

The Services Sector PMI recorded 57.7 index points in September from 61.2 index points in August 2016. The decline in PMI over the last month’s value indicates that economic activities in the services sector expanded at a slower rate in September 2016 compared to the previous month.

“The decline in Services PMI was caused by declines in New Businesses, Business Activity, Employment and Backlogs of Work sub-indices. Nevertheless, expectations for Activity sub-index increased in September 2016 compared to the previous month. Prices Charged, which is not taken into consideration in PMI compilation process, increased but at a slower rate in September 2016,” it added.