The Purchasing Managers' Indices (PMIs) for both manufacturing and services activities expanded in September, the Statistics Department announced yesterday (15).
Manufacturing
Manufacturing activities expanded at a higher rate in September 2020, compared to August 2020. This expansion in manufacturing PMI was mainly attributable to the increase in production and new orders, especially in the manufacturing of food and beverages and textiles and wearing apparel sectors, the Statistics Department noted.
Some respondents in the manufacturing of food and beverages and textiles and wearing apparel sectors highlighted that their factories operated at full capacity, receiving more new orders with the normalisation of business activities. Further, the employment sub-index increased in line with these developments. Further, the stock of purchases sub-index increased at a slower pace in September. The suppliers’ delivery time sub-index continued to lengthen at a higher pace, due to issues in logistics such as shortage of direct shipping services.
Some respondents highlighted that the restrictions imposed on the importation of some categories of goods continued to affect the smooth functioning of manufacturing activities. The sub-index of overall expectations for manufacturing activities for the next three months declined significantly due to the prevailing situation of the spread of the Covid-19 virus in the country, particularly centring to some manufacturing zones.
The world outlook
The global manufacturing PMI recorded a value of 52.3 in September 2020 with an increase of 0.5 index points from August 2020. Manufacturing PMIs of India, the US, and the Eurozone continued to expand at a higher rate while those of the UK and China expanded at a slower rate in September 2020. Further, the manufacturing PMI of Russia contracted during the month with the adverse impact of Covid-19.
Source: Markit1 as at 15 October 2020
Services
The services sector continued to expand for the fourth consecutive month with the PMI recording 54.3 in September 2020 compared to the previous month. This was underpinned by the expansions observed in new businesses, business activities, and expectations for activity compared to August 2020, indicating a further recovery of services sector activities. New businesses, particularly in the financial services and insurance sub-sectors, improved in September 2020 with the gradual normalisation in economic activities. Business activities also expanded in September 2020, yet at a slower pace. The financial services sub-sector was the main contributor to this expansion with increased financial facilities provided to support the businesses, which were negatively affected by the pandemic. Further, respondents in cargo handling services cited that they were able to handle more transshipments in September 2020.
Moreover, business activities related to the insurance and professional services sub-sectors also expanded during the month. The employment sub-index almost reached the 50-threshold level in September 2020 after a continuous decline in employment for seven months. Backlogs of work continued to remain in the negative territory, indicating that any increase in demand can be met with the existing capacity.
Meanwhile, Expectations on future business activities increased further in September 2020, with the positive sentiments which prevailed on the recovery of the economy in the second half of the year. Nevertheless, some respondents expressed concerns on the realisation of their expectations due to the re-emergence of the risk of the spread of the Covid-19 virus in the country.
The world outlook
The global services PMI declined to 51.6 in September 2020 from a seven-month high of 52.0 in August 2020, signalling an expansion in global service activities for the third consecutive month. The services PMIs of the US, China, and the UK indicated that their services sectors expanded in September 2020 compared to the previous month, while those of Japan and India indicated a deterioration.
Source: Markit1 as at 15 October 2020
(Markit1 is a leading global diversified provider of financial information services. It is identified as the global PMI compiler and compiles PMIs for over 30 countries and for key regions including the Eurozone)Manufacturing and services PMIs expanded in September
16 Oct 2020
Manufacturing and services PMIs expanded in September
16 Oct 2020
The Purchasing Managers' Indices (PMIs) for both manufacturing and services activities expanded in September, the Statistics Department announced yesterday (15).
Manufacturing
Manufacturing activities expanded at a higher rate in September 2020, compared to August 2020. This expansion in manufacturing PMI was mainly attributable to the increase in production and new orders, especially in the manufacturing of food and beverages and textiles and wearing apparel sectors, the Statistics Department noted.
Some respondents in the manufacturing of food and beverages and textiles and wearing apparel sectors highlighted that their factories operated at full capacity, receiving more new orders with the normalisation of business activities. Further, the employment sub-index increased in line with these developments. Further, the stock of purchases sub-index increased at a slower pace in September. The suppliers’ delivery time sub-index continued to lengthen at a higher pace, due to issues in logistics such as shortage of direct shipping services.
Some respondents highlighted that the restrictions imposed on the importation of some categories of goods continued to affect the smooth functioning of manufacturing activities. The sub-index of overall expectations for manufacturing activities for the next three months declined significantly due to the prevailing situation of the spread of the Covid-19 virus in the country, particularly centring to some manufacturing zones.
The world outlook
The global manufacturing PMI recorded a value of 52.3 in September 2020 with an increase of 0.5 index points from August 2020. Manufacturing PMIs of India, the US, and the Eurozone continued to expand at a higher rate while those of the UK and China expanded at a slower rate in September 2020. Further, the manufacturing PMI of Russia contracted during the month with the adverse impact of Covid-19.
Source: Markit1 as at 15 October 2020
Services
The services sector continued to expand for the fourth consecutive month with the PMI recording 54.3 in September 2020 compared to the previous month. This was underpinned by the expansions observed in new businesses, business activities, and expectations for activity compared to August 2020, indicating a further recovery of services sector activities. New businesses, particularly in the financial services and insurance sub-sectors, improved in September 2020 with the gradual normalisation in economic activities. Business activities also expanded in September 2020, yet at a slower pace. The financial services sub-sector was the main contributor to this expansion with increased financial facilities provided to support the businesses, which were negatively affected by the pandemic. Further, respondents in cargo handling services cited that they were able to handle more transshipments in September 2020.
Moreover, business activities related to the insurance and professional services sub-sectors also expanded during the month. The employment sub-index almost reached the 50-threshold level in September 2020 after a continuous decline in employment for seven months. Backlogs of work continued to remain in the negative territory, indicating that any increase in demand can be met with the existing capacity.
Meanwhile, Expectations on future business activities increased further in September 2020, with the positive sentiments which prevailed on the recovery of the economy in the second half of the year. Nevertheless, some respondents expressed concerns on the realisation of their expectations due to the re-emergence of the risk of the spread of the Covid-19 virus in the country.
The world outlook
The global services PMI declined to 51.6 in September 2020 from a seven-month high of 52.0 in August 2020, signalling an expansion in global service activities for the third consecutive month. The services PMIs of the US, China, and the UK indicated that their services sectors expanded in September 2020 compared to the previous month, while those of Japan and India indicated a deterioration.
Source: Markit1 as at 15 October 2020
(Markit1 is a leading global diversified provider of financial information services. It is identified as the global PMI compiler and compiles PMIs for over 30 countries and for key regions including the Eurozone)Kapruka
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