Purchasing Managers Index: MCB’s first PMI shows an optimistic picture
Over 200 companies across the country selected for survey.
PMI index is based on five major indicators that are new orders, inventory levels, production, supplier deliveries and the employment environment. DESIGN: JAHANZAIB HAQUE
LAHORE:
MCB Bank has taken an initiative to launch Pakistan’s first Purchasing Managers Index (PMI), which portrays an optimistic image of the country’s manufacturing sector, as the first PMI reading for the month of January stands at 66.54 points.
“PMI is an indicator of the economic health for the manufacturing sector” said Amer Nazir Khan, the head of treasury at MCB Bank, while briefing media. The index will give an indication of the direction of the economy. The PMI is released by all developed economies that guide business sentiments about the economy, Khan said.
PMI index is based on five major indicators that are new orders, inventory levels, production, supplier deliveries and the employment environment.
Over 200 companies from large, medium and small scales, across all sectors of the economy and across Pakistan were selected for this purpose and were questioned to each of the above indicators.
On the basis of the answers, 15% companies said that they saw a decline in new orders, 23.3% said there was no change in new orders, while 59.3% companies saw increase in new orders for the month of January 2014, Khan said. PMI score under this indicator was 72%, he added.
On the question about the productivity in January 2014, 11% experienced lower production, 39.5% said that production remained unchanged while 49.5% companies stated that their productions increased. The PMI under this indicator was 69.2%.
Published in The Express Tribune, February 26th, 2014.
MCB Bank has taken an initiative to launch Pakistan’s first Purchasing Managers Index (PMI), which portrays an optimistic image of the country’s manufacturing sector, as the first PMI reading for the month of January stands at 66.54 points.
“PMI is an indicator of the economic health for the manufacturing sector” said Amer Nazir Khan, the head of treasury at MCB Bank, while briefing media. The index will give an indication of the direction of the economy. The PMI is released by all developed economies that guide business sentiments about the economy, Khan said.
PMI index is based on five major indicators that are new orders, inventory levels, production, supplier deliveries and the employment environment.
Over 200 companies from large, medium and small scales, across all sectors of the economy and across Pakistan were selected for this purpose and were questioned to each of the above indicators.
On the basis of the answers, 15% companies said that they saw a decline in new orders, 23.3% said there was no change in new orders, while 59.3% companies saw increase in new orders for the month of January 2014, Khan said. PMI score under this indicator was 72%, he added.
On the question about the productivity in January 2014, 11% experienced lower production, 39.5% said that production remained unchanged while 49.5% companies stated that their productions increased. The PMI under this indicator was 69.2%.
Published in The Express Tribune, February 26th, 2014.