PMI Surveys Results

The services PMI fell in January 2010 according to a recent CIPS survey after the promising signs of recovery of last year. The index fell to 54.5 from 56.8. The weather was blamed for much of it and VAT blamed for the the rise in input prices.

The PMI for manufacturing reached a 15 year high in January 2010. The rise in the index of 56.7 from 54.6 is the highest since October 1994. New orders increased at the fastest for 6 years and new export orders are rising.

The CIPS index for the construction industry also reported a slight rise. The PMI for construction increased from 47.1 to 48.6 but the industry is still in contraction with declines in new orders and a weak fall in employment. There is still optimism about the future.

Manufacturing Recession Improvement

The Chartered Institute of Purchasing and Supply (CIPS) has recently reported that the manufacturing sector is still in recession but the figures for the month of April show a marked improvement in terms of output and new orders. The Purchasing Managers Index (PMI) for April was 42.9 from 39.1 in March. Employment, inventories and output prices fell at record pace. The biggest cuts in employment were by the larger companies but overall a third reported job losses. The PMI is moving away from its February record low.

(The Chartered Institute of Purchasing and Supply PMI Survey indicates 50%=neutral and below 50% means a contraction)