Manufacturing PMI expanded at a slower pace in December 2019 recording an index value of 54.3 mainly due to the slower expansion in New Orders, Production and Stock of Purchases.
All the sub-indices indicated an expansion, yet at a slower pace, compared to November 2019.
New Orders and Production expanded at a slower rate owing to the slowdown in manufacturing of textile and wearing apparel sector.
A significant slowdown in employment was experienced, particularly in manufacturing of wearing apparel sector as potential employees were attracted to seasonal jobs for better remuneration. This slowdown in employment partly impacted the slowdown in production.
Although the New Orders and Production expanded at a slower pace, the Stock of purchases expanded at a higher rate due to intended accumulation of stocks in December 2019 to fulfil the future requirements, anticipating supply disruptions, due to upcoming Chinese new year holidays. Further, Suppliers' Delivery Time remained at the neutral level indicating that it remains as same as in the previous month.
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