Marked hike in new orders in manufacture of food and beverages sector in November

Benefitting from the normalising of economic activities in the country, the Manufacturing PMI continued to expand in November 2021 and recorded an index value of 61.9. The significant increases in Production, New Orders, and Stock of Purchases sub-indices were mainly contributed to this improvement in the PMI. A significant increase was observed in New Orders, particularly in the manufacture of food & beverages sector. Many respondents in this sector mentioned that they secured more orders in November 2021 than the previous month, for the upcoming festive season. Further, Production, especially in the manufacture of textile and wearing apparel sector increased during the month. Many respondents in this sector highlighted that their production levels were able to increase in November 2021 catering to the seasonal demands. Meanwhile, Employment expanded at a slower rate compared to the previous month.

The Stock of Purchases increased in line with the improvement in New Orders and Production, and some respondents in the manufacture of textile and wearing apparel sector highlighted that they increased purchases, anticipating supply-side disruptions due to upcoming Chinese new year holidays. Meanwhile, Suppliers’ Delivery Time lengthened at a slower rate in November 2021. The continuous increase in the cost of imported raw materials, mainly due to rising global commodity prices, has been highlighted as a major concern by most of the respondents in all sub-sectors. In the next three months, expectations for manufacturing activities remain at higher levels anticipating further improvements in economic condition locally and globally.