HBL PMI: weaker new orders weigh on manufacturing activity

Business Recorder reported that the HBL Pakistan Manufacturing PMI eased to 50.9 in September from 51.8 in August. This represented the mildest growth in manufacturing in three months. The publication linked the moderation to the continuing effects of Middle East tensions on the domestic economy.

New orders fell in September, the first decline since June, as costly fuel and tighter household budgets dampened demand. Export orders nevertheless extended their growth to a fifth straight month. Manufacturers, however, stepped up purchasing at the quickest pace in seven months, stocking inventories to guard against possible supply disruptions.

Selling prices rose faster even though input price inflation kept easing, with fuel still the main cost pressure that pushed manufacturers to pass costs on to consumers. Humaira Qamar, Head of Equities & Research at HBL, said business confidence reached its highest level of 2026 yet weaker domestic orders and quicker price growth left the recovery exposed to a stalled US-Iran negotiation. She added that manufacturing and the wider economy are linked to how the Middle East situation evolves.