Manufacturing and services activities slow down sharply in April – Business News








  • Both record index values ​​below 50 indicating a contraction
  • Fewer working days, power cuts and difficulties in supplying inputs for main production reasons
  • Global business expectations for the next 3 months are deteriorating

Manufacturing and service activities slowed significantly in April due to fewer working days, prolonged power outages and difficulties in supplying inputs, including fuel and cooking gas for the process of production.

As a result, the manufacturing PMI fell to an index value of 36.4, down 21.4 index points from the previous month, while the services PMI recoded an index value of 43. .8, against 7.5 index points in March.
An index value below 50 indicates a contraction.

“The decline in production, particularly seen in the food and beverage and textile and apparel sectors, was due to a decrease in the number of working days during the month due to the New Year holidays and supply-side constraints, including ongoing blackouts and energy shortages,” the central bank said.

The decline in new orders, particularly seen in the food and beverage manufacturing sector, was due to the end of holiday season demand. Employment also fell month-on-month as absences increased after the New Year holidays.

The inventory of purchases decreased mainly due to the unavailability of the quantities required on the domestic market and difficulties in opening letters of credit for the import of materials.

Many manufacturers have reported having to slow down production due to the unavailability of the necessary raw materials.

Meanwhile, supplier delivery time has lengthened at a higher rate in April 2022, mainly due to international logistics issues, customs clearance delays due to foreign currency payment issues, and diesel shortage. .

While manufacturers are concerned with growing uncertainties on multiple fronts, overall expectations for manufacturing activities for the next three months deteriorated further in April 2022.

At the same time, in the services sector, New Businesses fell in April 2022 for the first time since
August 2021, in particular with the deteriorations observed in the sub-sectors of accommodation, catering, insurance, real estate and transport.

Business activities also declined in April 2022 due to continued disruptions to business operations primarily attributable to prolonged power outages and difficulties in supplying inputs, including fuel and gas.

In addition, weak demand amid reduced purchasing power, lower tourist arrivals and uncertainties in the country has also negatively affected business activities in some sub-sectors.

Thus, the sub-sectors of accommodation, catering, professional services, education, insurance and real estate recorded significant contractions during the month.

Nevertheless, several businesses, mainly in wholesale and retail trade and other personal activities subsectors, saw progress buoyed by festive demand, the central bank said.

Employment fell slightly in April 2022 due to contract expirations, retirements and resignations.
Meanwhile, work delays increased for the first time since September 2021 due to power outages, supply shortages and transportation difficulties.

Expectations for business activities for the next three months deteriorated further in April due to prolonged power outages, supply shortages and sharp increases in the prices of fuel, gas and other inputs, l increase in borrowing costs, moderate demand for non-essential and economic, political and social commodities. the instability of the country.


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