HBL PMI: Weaker New Orders Weigh on Manufacturing Activity

Mettis Global reported that the HBL Pakistan Manufacturing PMI dropped from 51.8 in August to 50.9 last month. The reading signalled the slowest expansion in factory activity in three months. According to the release, the moderation reflects the continuing spillover of Middle East tensions into the domestic economy.

Demand at home softened, as new orders declined in September, the first drop since June. Higher fuel prices and weaker household spending power were cited as the drivers. Export orders still rose, extending their growth run to five straight months, while purchasing reached its fastest pace in seven months as firms built stock against possible supply disruption.

Selling price inflation picked up even though input price inflation kept easing, as firms shifted rising running expenses onto customers. Fuel stayed the main cost pressure. Humaira Qamar, Head of Equities & Research at HBL, said business confidence reached its highest level in 2026, but cautioned that a prolonged deadlock in US-Iran talks could undermine the recovery.