The Services Sector PMI increased to 58.7 index points in June 2018 from 56.9 index points recorded in May 2018 supported by faster growth in business activity.
The Manufacturing Sector PMI decreased to 57.6 index points in June 2018 from 60.6 index points observed in the previous month and was in line with the pattern observed in the previous years.
The significant drop in production especially that of manufacturing of food, beverages and tobacco products largely contributed for this decrease. Further, new orders and stock of purchases also decreased during the month. However, the overall employment increased with the new recruitments in manufacturing of textiles, wearing apparel, leather and other related products.
Meanwhile, the time taken by the suppliers to deliver materials increased due to unfavourable weather conditions prevailed during the month and the tightened environmental regulations in China. As a result, the suppliers’ delivery time lengthened.
Overall, all the sub indices of PMI recorded values above the neutral 50 threshold in June 2018 signalling an overall expansion in manufacturing activities yet at a slower phase compared to May 2018. Meanwhile, the expectation for activities indicates an improvement for the next three months.
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