Reflecting that manufacturing activities are gradually approaching the pre-COVID levels with the normalization of business activities, the Manufacturing PMI continued to expand in July 2020 recording 64.6 mainly due to the expansion in new orders and production sub-indices.
The new orders and production sub-indices expanded, yet at a slower rate, benefitting from new orders received in July 2020. Meanwhile, employment remained expanded in line with these developments. The Stock of purchases expanded at a higher rate due to intended accumulation of stocks for future productions, anticipating higher demand with the normalization of economic activities.
The suppliers’ delivery time continued to lengthen, at a slower pace, during the period. Respondents highlighted that the restrictions imposed on importation of certain categories of goods adversely affected some manufacturing activities.
Services sector continued to expand for the second consecutive month with PMI reaching 51.4 in July 2020. This was underpinned by the expansions observed in new businesses, business activities and expectations for activity compared to June 2020 indicating a further recovery in the services sector, which was affected by COVID-19 pandemic.
New businesses, particularly in the areas of financial services and insurance sub-sectors improved in July2020, with the gradual recovery in economic activities.
Business Activities in most of the sub sectors expanded during the month indicating abroad-based recovery in service activities. With the rise in financial facilities granted, business activities in the financial services sub-sector improved in July 2020 compared to the previous month.
Employment continued to decline in July2020 for the sixth consecutive month owing to halt in new recruitments. Further, backlogs of work declined in July 2020 since most of the firms are operating under a usual working environment.
Meanwhile, the global manufacturing PMI recorded a value of 50.3 in July2020 with an increase of 2.4 index points from June 2020.Manufacturing PMI of Eurozone, UK, China and USA expanded at a higher rate while Russia and India remained contracted in July2020 with the adverse impact of COVID-19.
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