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Factory output down despite export growth

Domestic weakness holding back manufacturing recovery
Domestic weakness holding back manufacturing recovery

New figures show that the activity in the manufacturing sector fell last month for the third month in a row.

The NCB Purchasing Managers' Index recorded 49.7, a slight improvement from July's 48.2, but still below the 50 level which separates growth from contraction.

New orders fell for the third month running, despite stronger growth in export orders, as the domestic market remained weak. The fall in new orders was the biggest since September last year.

The rise in export orders meant that manufacturing output rose for the first time in three months. There was also a marginal rise in employment at manufacturing firms, for the first time since April.

The part of the index which measures firms' costs again rose sharply, recording 58.9, with companies reporting higher oil and raw materials prices. But firms lowered the prices they charged customers for the first time this year due to intense competitions.