Slower growth: MCB PMI drops 3.87 points
The current reading is the lowest MCB PMI value since the index’s inception
LAHORE:
Political instability in the country has haunted the economy over the last couple of months. The Muslim Commercial Bank’s (MCB) Purchasing Manager Index (PMI) figures indicated that the manufacturing sector slipped 3.87 points to 60.39 compared to previous reading of 64.26.
The report still insists that this reading of 60.39 is a growing trend for the fifth consecutive time since the index was launched, but at a slower pace. The current reading is the lowest MCB PMI value since the index’s inception.
A good reading enhances the attractiveness of an economy. The magic number for the PMI is 50. A reading of 50 or higher indicates that the manufacturing is expanding. If manufacturing is expanding, the general economy should be doing likewise.
PMI is an economic indicator used to monitor the macroeconomic trends and plays an important role in forecasting and monitoring the economic health of the manufacturing sector.
Published in The Express Tribune, October 4th, 2014.
Political instability in the country has haunted the economy over the last couple of months. The Muslim Commercial Bank’s (MCB) Purchasing Manager Index (PMI) figures indicated that the manufacturing sector slipped 3.87 points to 60.39 compared to previous reading of 64.26.
The report still insists that this reading of 60.39 is a growing trend for the fifth consecutive time since the index was launched, but at a slower pace. The current reading is the lowest MCB PMI value since the index’s inception.
A good reading enhances the attractiveness of an economy. The magic number for the PMI is 50. A reading of 50 or higher indicates that the manufacturing is expanding. If manufacturing is expanding, the general economy should be doing likewise.
PMI is an economic indicator used to monitor the macroeconomic trends and plays an important role in forecasting and monitoring the economic health of the manufacturing sector.
Published in The Express Tribune, October 4th, 2014.