Purchasing Managers’ Indices contract in November 2022
Indicating a setback in manufacturing activities on a month-on-month basis, Manufacturing PMI recorded an index value of 42.1 in November 2022. This setback was contributed by subdued performance observed in all the sub-indices, except for Suppliers’ Delivery Time.
New Orders and Production remained contracted in November mainly due to the subdued demand conditions, particularly in the manufacture of the food and beverages, and textile and wearing apparel sectors. Many respondents representing the food and beverages sector mentioned that deterioration of purchasing power of the consumers was the major reason for the decline in demand. In the meantime, export-oriented manufacturers, particularly in the textile & apparel sector, highlighted that the subdued demand was due to the economic slowdown in major export destinations and shifting of orders to other countries amidst stiff competition.
Besides these, acquiring required raw materials was an issue for certain manufacturers due to a shortage of foreign exchange. Furthermore, employment and stock of purchases declined in-line with the decline in new orders and production. Meanwhile, suppliers’ delivery time lengthened in November 2022 compared to the previous month. Meanwhile, the Services PMI recorded an index value of 49 in November 2022, up from 47.9 in October, yet remained slightly below the neutral threshold level.
New Businesses improved in November 2022 compared to October 2022, particularly with the increases observed in some financial services, insurance, and other personal activities. Business Activities in the services sector continued its increasing trend in November 2022 due to the upcoming festive season.
Accordingly, business activities related to other personal activities, financial services and telecommunication sub-sectors showed improvements compared to the previous month. Further, in line with the increase in tourist arrivals, business activities in accommodation, food and beverages sub-sector also increased. However, business activities related to the wholesale and retail trade sub-sector declined further during the month amid the continued cost of living challenges. However, employment and backlogs of work declined during the month.
World manufacturing, Services PMI dips
The global manufacturing PMI recorded a value of 48.8 in November 2022, with a decrease of 0.6 index points from October. Manufacturing PMIs of India and Russia improved at a higher pace in November 2022 while it increased at a slower rate in Singapore compared to the previous month. However, manufacturing PMIs of Eurozone, UK, USA and China deteriorated in November 2022 compared to the previous month.
Meanwhile Services PMI Global services PMI posted 48.1 in November 2022 from 49.2 in October 2022 signaling decline in global services activities.
Services PMIs of India and Japan indicated that their services sectors expanded in November 2022 compared to the previous month, while PMIs in China, UK and US indicated a deterioration in their services activities.