The prices subindex had increased to 53.2 (+4) because it was affected by an uprise in employment subindex (50.2, +3.3). The employment increased as the producers boosted its production (48.9, +1.1) to fulfil the increase in customers’ inventories (51.3, +2.4) which was caused by an increase in new orders (45.7, +1.4) from new export order (49.8, +2.2). However, the new local order was declined (Est'd -0.8) as consumers cut back on their spendings because of the high inflation.
The backlog of order fell to 43.1 (-0.8) because the increase in customers’ inventories exceeded the new order. The supplier’s delivery (44.6, -0.2) continued to improve due to an easing in supply and logistical issues. A lower delivery index means a faster delivery period. The inventories (46.3, -1.2) were depleted by the production boost and the producers used more imported material (49.9, +2) than local raw material (Est’d -3.2).
In conclusion, the above factors caused the PMI to increase marginally to 47.1 (+0.8) but the economy would still enter into a recession in 2023 as the PMI had been contracting (below 50) for 6 months already.
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