The significant increases in new orders, production, employment, and Stock of purchases sub-indices, particularly in the manufacture of textile & wearing apparel and food & beverage sectors, have mainly contributed to the considerable improvement in the PMI.
Some respondents in those sectors highlighted that they received higher export orders, especially from Europe, with the gradual normalization of economic activities, and they resumed new recruitments with the expectation of future demand and following the progress of the COVID-19 vaccination programme.
Meanwhile, the Stock of Purchases sub-index increased in line with the expansion in new orders and production while the suppliers’ delivery time continued to lengthen in July 2021. Many respondents stressed that delays in the opening of letters of credit and delays in settlement of foreign payments adversely affect the supply chain of importing raw materials. This has caused disturbances in their production schedules.
The manufacturers cautioned that the uncertainty over the rapid spread of the COVID-19 virus would hamper the manufacturing activities in the country. Accordingly, overall expectations for manufacturing activities for the next three months deteriorated significantly compared to the previous month, yet remained above the neutral threshold.
The World Outlook: Manufacturing PMI
The global manufacturing PMI recorded a value of 55.4 in July 2021 with a decrease of 0.1 index points from June 2021. Manufacturing PMIs of the USA and India increased at a higher rate, while those of Europe, UK and China increased at a slower rate.
Meanwhile, Russia indicated a further deterioration in manufacturing PMI in July 2021.
World Services PMI
Global services PMI posted 56.3 in July 2021 down from 57.5 in June 2021, though signalling a further expansion of global service activities.
Services PMIs of the USA, China and UK indicated that their services sectors expanded in July 2021 compared to the previous month, while that of India and Japan indicated a deterioration.