Manufacturing PMI eases but remains in expansion zone in December
Manufacturers saw a further increase in new orders in December. The recovery, however, was the slowest since September. Inventories of inputs increased, while inventories of finished goods continued to decline, as companies realized higher sales from existing inventories.
The inflation rate fell to its lowest level in three months, but remained above its long-term average. Companies reported higher prices paid for a wide range of items, including chemicals, food, electronic components, metals and textiles.
Some companies passed higher costs on to customers, but the headline inflation rate was the lowest since October 2020. “Despite a slowdown in December, input cost inflation was still at one of its lowest rates. higher in about seven and a half years, ”De Lima said.
Concerns over high price pressures hampered business confidence in December, with companies also fearing the pandemic and supply chain issues could hold back the recovery next year.
Supplier performance has deteriorated to the greatest extent since August 2020. Delays were generally associated with the scarcity of raw materials at distributors.
New export orders increased for the sixth consecutive month.
The overall level of optimism remained below its long-term average despite an improvement from the 17-month low in November.