PMI expands to 58.1 in Dec.

Manufacturing PMI indicates that manufacturing activities sustained the expansion on a month-on-month basis in December 2021, recording an index value of 58.1 mainly due to the expansion in New Orders and Production. All the sub-indices except Employment increased during the month.

The expansion in New Orders and Production was mainly driven by seasonal demand for the food & beverage manufacturing sector. New Orders and Production in the manufacture of textile and wearing apparel sector also showed an improvement, yet at a slower pace. However, Employment sub-index declined in December compared to November 2021. Meanwhile, Suppliers’ Delivery Time lengthened at a higher pace in December 2021. Delays due to port congestion increase in orders ahead of the Chinese New Year holidays, shortage of local raw materials were among the major causes of lengthening the Suppliers’ Delivery Time.

In the next three months, expectations for manufacturing activities remain at higher levels anticipating continuous improvements in economic conditions locally and globally.

Meanwhile, Services sector PMI edged up to an index value of 62.4 in December marking a strong end to 2021. This increase was underpinned by the increases observed in New Businesses, Business Activities, Employment and Expectations for Activity sub-indices.

New Businesses rose further in December compared to the previous month with the improvements observed across most of the sub-sectors.