The prices had accelerated again to 89.6(+4) because of the persistent high freight costs, container shortages and rising material prices which still maintained the supplier’s deliveries at a high level of 75 as a higher number indicated slower deliveries. Simultaneously, these factors impacted inventories (45.6, -4.3) and import (52.2, - 4.5) too.
Consequently, the producers were left with no choice but to reduce their production (62.5, -5.6) and employment (55.1, -4.5). The customers’ inventories (28.4, - 1.5) continued to be depleted as the producers fulfilled fewer new orders (64.3, -3.7) which were caused by a decline in new local order (-4.1) because of rising prices. This denoted higher inflation which was present and caused consumers to rein in their spendings.
The backlog of order continued to trend higher (68.2, +0.7) because the producers couldn’t fulfill all the orders in time. Therefore, all these caused the PMI to decline to 60.7 (-4). This latest PMI was not a cause of concern yet as the customers’ inventories were extremely low but another month of declining PMI would indicate that the recovery would be weakening due to higher inflation.
.jpg)
No comments:
Post a Comment