The Manufacturing Sector PMI recorded 59.1 in December which is a marginal increase of 0.3 index points compared to November 2017. This indicates that the Manufacturing activities expanded at a higher pace in December compared to November 2017. This was mainly driven by the increase in the Production sub-index. Further, Stock of Purchases and Employment sub-indices also expanded at a higher pace while New Orders sub-index expanded, albeit at a slower rate, during the month as compared to November 2017. Meanwhile, the Suppliers’ Delivery Time sub-index lengthened at a higher rate compared to previous month. Overall, all the sub-indices of PMI recorded values above the neutral 50.0 threshold signalling an overall expansion in December 2017. Moreover, The Expectation for activities indicates an improvement for the next three months.
The Services Sector PMI recorded 61.2 index points in December from 57.4 index points in November 2017. This indicates that the Services sector activities expanded at a higher rate in December 2017. This was supported by all sub-indices namely New Businesses, Business Activity, Employment, Backlogs of Work and Expectations for Activity. This is the first time that Backlogs of Work sub index increased beyond the 50.0 threshold since the survey began in May 2015. New Businesses reached a six-month high, indicating further growth momentum in the Services sector. The expansion in Business Activity was mainly observed in wholesale and retail trade; and accommodation, food and beverage service sub sectors, reasons being increased demand in festival season and increase in both local and foreign tourism. Prices Charged increased at a higher rate in December compared to November 2017 due to increased demand in festival season. Expected Labour Cost increased in December 2017 due to encashment of unutilized leave for 2017 and expected salary increments in 2018 under collective agreements.