Job market outlook for apparel sector remains neutral

Hiring jumps in food and beverages sector anticipating upcoming festival demand

According to the latest Purchasing Managers’ Index of the Central Bank, employment in the manufacture of textile and wearing apparel sector remained in the neutral threshold during the month of February 2021.

However, employment expanded at a higher rate in February compared to January, particularly in the manufacture of food & beverages sector, in-line with increase

in production, the report indicated.

The report further states: “Manufacturing PMI sustained its expansion in February 2021 recording an index value of 59.4, owing to the expansion in production and new orders. Further, stock of purchases and employment as well as suppliers’ delivery time remained expanded supporting to sustain the overall manufacturing sector PMI at an elevated level.”

“Production sub-index increased during the month, especially in the manufacture of food and beverages sector, anticipating the upcoming festival demand while new orders

recorded a high index value. Further, the manufacture of textile and wearing apparel sector also recorded healthy index values with regard to new orders and production.”

“Although Production expanded at a higher pace, the stock of purchases expanded at a slower rate mainly due to the piled-up stocks during the previous month, owing to anticipated supply disruptions due to Chinese New Year holidays.”

“Further, the suppliers’ delivery time sub-index lengthened at a slower pace

during the month. Expectations for manufacturing activities in the next three months

remained at improved levels with the expectation for the normalisation of economic activities within the country as well as in major export markets.”

“Services PMI increased to 56.5 in February 2021 indicating a further improvement in

the services sector. This increase was underpinned by the expansions observed in new

businesses, business activities and expectations for activity. New businesses increased in February 2021, particularly with the improvements observed in financial services, other personal services and real estate activities sub-sectors.”

“Business activities in the services sector increased in February 2021 for the third consecutive month. Transportation and financial services sub-sectors recorded an improvement during the month with the normalisation of economic activities. Further, the business activities in education sub-sector expanded in February 2021 due to

new intakes of students to higher education institutes after G.C.E. Advanced Level examination. Moreover, other personal services and real estate activities sub-

sectors also experienced an increase in business activities in February 2021,” the report said.