The Manufacturing Sector's Purchasing Manger Index (PMI) recovered in May following the seasonal contraction observed in the previous month and recorded an index value of 60.6 in May with an increase of 15.1 index points from April.
The recovery of PMI was largely attributable to the significant increase in production to cater both the new orders received during the month and the uncompleted orders received in April due to the new year holidays, especially in the manufacturing of textiles, wearing apparel, leather and other related products.
Overall, all the sub-indices of PMI recorded values above the neutral 50.0 threshold in May 2018 signaling an overall expansion in manufacturing activities during the month.
Moreover, the expectation for activities indicates an improvement for the next three months. The Services Sector PMI recorded 56.9 index points in May 2018 from 53.2 index points in April 2018.
The service sector experienced a strong upturn in May following subdued activity levels seen in April and was mainly supported by the faster growth in new businesses, business activity and employment.
The rise in new businesses and business activities was mainly observed in financial services, telecommunication and warehousing sectors.
Respondents cited expansion of service delivery channels and technology based improvements as contributory factors to this growth.
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