Festive period stockpiling, stable forex aid PMI’S expansion

CONTINUED availability and stability of foreign exchange, as well as the need to increase in ventory in preparation for the festive period may ha ve impacted positively on the manufacturing PMI in the month of October.

Indeed, the Purchasing Managers’ Index (PMI), stood at 56.8 index points, indicating expansion in the manufacturing sector for the nineteenth consecutive month.

Precisely, both the manufacturing and non-manufacturing PMIS expanded at a faster pace compared with the slower increases recorded in the prior month.

The report reveals that manufacturing and nonmanufacturing indices recorded 56.8 points against 56.2 last month and 57.0 points respectively for the period under review.

Of the 14 subsectors surveyed, 13 reported growth in the review month in the following order: electrical equipment; petroleum & coal products; printing & related support activities; cement; chemical & pharmaceutical products. Others were textile, apparel, leather & footwear; furniture & related products; transportation equipment; plastics & rubber products; food, beverage & tobacco products; fabricated metal products; non-metallic mineral products; and paper products. However, the primary metal subsector declined in the review month.

At 58.9 points, the production level index for the manufacturing sector grew for the 12th consecutive month in October 2018. The index indicated a faster growth in the current month, when compared to its level in the preceding month.

Also, at 56.8 points, the new orders index grew for the 19th consecutive month, indicating an increase in new orders in October. Nine subsectors reported growth; two remained unchanged, while three contracted in the review month.