HBL manufacturing PMI edges down to a six-month low

Pakistan’s manufacturing PMI slipped to 50.8 in October from 50.9 in September, reaching its lowest level in six months, Business Recorder reported. The reading remained above 50.0, indicating modest expansion, while new orders returned to growth after falling in September. Export orders moved in the opposite direction, declining for the first time in six months and posting their steepest drop in over a year.

Input-cost inflation reached a record high in the survey, with respondents citing raw materials, particularly fuel and fabrics. Manufacturers raised selling prices at their fastest pace since April, while employment fell for the first time since May as firms sought to control costs. Humaira Qamar, HBL’s Head of Equities & Research, said confidence had weakened and noted that the SBP’s 50bps rate increase took the policy rate to 12.0%, with future decisions dependent on incoming inflation data.