Manufacturing activity continued to remain weak as demand falters in July
Manufacturing Purchasing Managers’ Index (PMI) remained subdued in July (47.8; Jun: 47.7), indicating a weak start for the 3Q23
- Though the index was slightly up compared to the previous month, it remained in contraction level (below the neutral level: 50.0) for the eleventh consecutive month or since September 2022. The weakness in the manufacturing industry is primarily attributed to weak global demand conditions.
Subdued demand conditions amid weak client confidence led to a slowdown in output production
- New orders eased sharply since January 2023 due to a slowdown in demand which moderated markedly since January 2023.
- Similarly, new export orders moderated further and at the fastest rate since May 2020.
- Consequently, output levels fell for the twelfth straight month but at the same pace seen in May and June, as production volumes were scaled back.
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