In January 2023, Purchasing Managers Indices indicated that Services activities remained slightly expanded while Manufacturing activities continued to deteriorate.
Manufacturing PMI signals a continued setback in manufacturing activities on a month-on-month basis in January 2023. Accordingly, Manufacturing PMI recorded an index value of 40.8 in January 2023, with a decline of 4.0 index points from the previous month driven by the decreases in all the sub-indices, except Suppliers’ Delivery Time.
The decline in New Orders and Production was mainly attributable to the subdued demand condition observed, particularly in the manufacture of food & beverages, and textiles & wearing apparel sectors. Many respondents involved in the manufacture of food and beverages mentioned they experienced a notable decline in demand mainly due to the deteriorating purchasing power of the consumers, in addition to the seasonal drop in demand following the December festival season. Export-oriented manufacturers such as those in the textiles & wearing apparel sector observed that the export demand remains subdued amidst a slowdown in major export destination economies, forcing them to run factories significantly below the full capacity. Meanwhile, Employment and Stock of Purchases also declined in line with the decline in New Orders and Production. Many respondents mentioned that they intentionally reduced material purchases with the inventory build-up. Further, Suppliers' Delivery Time lengthened in January 2023, compared to the previous month on a month-on-month basis.