New orders and output rose at above-trend rates, yet both recorded their weakest increases since February amid reports of tough market conditions, delayed project starts and heightened competition. Manufacturers cited solid demand, competitive pricing and improving client interest, but the overall rise in order book volumes slipped to a nine-month low. Export demand also cooled, with new export orders increasing at the slowest pace in more than a year despite growth across Africa, Asia, Europe and the Middle East, S&P Global said in a press release.
Production followed a similar pattern, expanding sharply but at the softest rate in nine months. Some firms reported efficiency gains and strong domestic demand, while others highlighted product-specific weakness that limited output.
Hiring and input buying slowed in response to softer sales growth. Employment increased for a twenty-first consecutive month but at the weakest pace in this sequence. Purchasing activity continued to expand, supporting a further build-up in input inventories, though the rate of accumulation was the slowest in nine months. Stocks of finished goods declined as companies met orders from existing inventories.
Inflationary pressures moderated noticeably. Input costs rose at the weakest rate since February, allowing firms to limit increases in selling prices, with output charge inflation easing to an eight-month low. Suppliers’ delivery times improved further, and outstanding business volumes were broadly unchanged, indicating limited capacity pressures.
Business confidence remained positive but slipped to its lowest level since mid-2022. Companies cited concerns about competitive pressures, including rising challenges from international rivals, leading to downgraded expectations for the year ahead.
ALCHEMPro News Desk (KD)
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