Manufacturing and services activities expand in November

The Purchasing Managers’ Indices (PMIs) in November 2017 continued to expand at a faster pace compared to October, due to the Christmas and New Year festive season, according to the Central Bank.

The Manufacturing Sector PMI recorded 58.8 in November; it was an increase of 4.0 index points compared to October 2017.  

A figure of over 50 index points indicates a growth over the previous month.

“Manufacturing activities expanded at a higher pace in November compared to October 2017. This was mainly driven by the New Orders and Production sub-indices owing to the increase in manufacturing of food, beverages and tobacco-related activities in line with the seasonal demand,” the Central Bank said.

Further, Employment and Stock of Purchases sub-indices also expanded at a higher pace during the month compared to October 2017. Meanwhile, the Suppliers’ Delivery Time sub-index lengthened, albeit at a slower rate, compared to the previous month. 

“Overall, all the sub-indices of the PMI recorded values above the neutral 50.0 threshold, signalling an overall expansion in November 2017. Moreover, the expectation for activities for next three months remained high with some moderation compared to the previous month,” the Central Bank said. Meanwhile, the Services Sector PMI recorded 57.4 index points in November, up from 55.3 index points in October 2017, indicating a more moderate growth pace compared to manufacturing.The Central Bank said that the growth was supported by Business Activity, New Businesses and Employment sub-indices. 

Expectations for activity for next three months however showed a decline decelerated while the Backlogs of Work sub-index declined in November compared to a month ago. “The expansion in business activity was mainly observed in financial services and telecommunication sectors, reasons being expansion of service delivery channels and technology-based improvements,” the Central Bank said.

It added that employment in the service sector reached a four-month high with companies gearing up with increased staff levels for the festival season and recruitment for previously opened positions. 

The prices charged decelerated in November compared to October 2017, while the expected labour cost increased in November 2017 due to seasonal benefits such as bonuses, festival advances and encashment of unutilized leave for 2017.