Purchasing Managers’ Indices contract

Purchasing Managers’ Indices for both Manufacturing and Services activities contract in February 2023.

Manufacturing PMI recorded an index value of 42.3 in February, indicating a continued setback in manufacturing activities on a month-on-month basis. This setback was driven by subdued performance observed in New Orders, Production, Employment and Stock of Purchases. The decline in New Orders and Production was mainly driven by subdued demand observed in the manufacture of food & beverages, and textile & wearing apparel sectors.

Expectations for manufacturing activities for the next three months indicated an improvement, anticipating an increase in demand and production targeting the upcoming festive season, despite the adverse impact of the decline in disposable income.

Many respondents representing the food & beverages sector mentioned that the decline in demand was mainly due to deterioration of purchasing power of the consumers. However, they expect demand to increase on a month on month basis, targeting the festive season in April.

Services sector PMI dropped to an index value of 48.7 in February 2023 indicating a deterioration across the services sector. This was driven by the declines observed in New Businesses, Business Activities, Employment and Backlogs of Work. New Businesses declined in

February 2023 compared to January 2023, particularly with the decreases observed in transportation, insurance and postal and courier sub-sectors. Business Activities in the services sector declined in February 2023 after six months of continuous growth. Expectations for Business Activities for the next three months improved in February amid increase in tourist arrivals, upcoming festive season and expectations of greater economic stability.