The prices subindex decreased significantly to 52.1 (-4.9) because all the PMI subcomponents were in a contractionary phase. The only positive factor was the suppliers’ deliveries (49.8, +0.9). A low index for suppliers’ deliveries meant that there was no disruption or congestion.
The new order increased to 49.3 (+3.9) which was caused by a significant rebound from the new local order (est’d 5.7) because the new local order had a huge decline previously. Thus, this rebound could just be an aberration.
The other subcomponents fell because the producers anticipated a weakening economic growth ahead and reduced their production, employment and inventories altogether.
All these reductions led to a further decline in the PMI (48.5, -0.2) and the PMI had been in a negative zone (below 50) since 3 months already.
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