The Purchasing Managers’ Index (PMI) fell by 0.5pts m/m to 56.6pts in November, the logistics association Halpim reported. The PMI remained strongly in positive territory but the indicator seemed to poorly predict actual output dynamics in the past few months so we do not rule out further negative surprises from the industry. The PMI reading for the month was the third highest for the year and also significantly above the long-term average for this month, the association pointed out.
Most of the PMI sub-indices deteriorated in November, including the output sub-index. It still remained in positive territory, signaling expansion for the eleventh straight month. On the other hand, new orders improved during the month and also showed expansion. The level of the new orders sub-index was the highest for the month since 1995, Halpim said. Purchased stocks also increased, which together with new orders might still mean some improved outlook for the short term, in our view. The employment index fell slightly m/m and was in contraction territory for the fifth time in the year so far.