Karachi: The HBL Information Manager Index (Pakistan (collected by the S& Pl Global) fell to 51.9 in April from 52.7 last month, which represents the lowest reading in seven months.
The Manager Participation Index is a vital aspirational measure for the general health measurement of the wider economy. The survey covers different ingredients including new requests, output and employment among other things.
New orders have turned to the lowest level since last September, amid a decrease in foreign demand for Pakistani goods.
However, it should be noted that reading is still more than 50.0, indicating an increase in manufacturing orders during the previous month.
Commenting on the latest version of the Procurement Manager Index, Humaira Qamar – Head Equits & Research in HBL stated, “In particular, the new export orders decreased for the first time in the history of the series. Employment levels decreased in the second month in a row as companies sought to reduce costs and adapt to low production needs. The output index has increased, and this has been transferred. This has been transferred. Partially by completing the approaching works.
In general, we believe that the latest declines of the purchasing managers index are early signs of the universal winds of the US definitions. The American recession scenario – a recession, accompanied by high prices – will affect the Pakistani economy, first due to a possible decrease in exports to the United States (the country represents 18 % of Pakistan’s exports), and secondly, exports are likely to suffer to other markets well. This can prolong the shrinkage in the manufacturing sector in Pakistan. The displacement of this can be in the form of a reduction in low energy imports in the event that basic commodity prices take a slowdown.
However, the confidence of work regarding expectations may be strengthened more, supported by hopes for improving demand conditions along with the cuts in the costs of electricity and inputs. In fact, inflation expectations are favorable, with the frequency of cost inflation and the height of production fees much lower than the average chain. Strong cooperative pressures may stimulate the bank’s monetary policy committee in the state to reduce the policy rate at the next MPC meeting on the fifth of May. “
