The recent cut in the policy rate is expected to stimulate production and economic activities. CREATIVE COMMONS
The manufacturing sector appears well poised to capitalise on the recent spate of favourable economic developments in the country.
The recent cut in the policy rate is expected to stimulate production and economic activities, allowing manufacturers to take advantage of declining input prices in the international market.
Although an uptick in inflation appears imminent in coming months, the prevailing level is significantly subdued compared to the recent past and it is hoped it will enhance the purchasing power of consumers, adding to the demand for manufactured goods.
Although structural bottlenecks such as power shortages and an inconsistent taxation regime continue to impede the performance of the manufacturing sector, the results of the 9th MCB PMI offer promising prospects for the manufacturing sector.
The MCB PMI recorded a value of 65.14 for May 2015 against March’s reading
of 65.13.
Published in The Express Tribune, June 4th, 2015.
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