More Moderate Growth in the Purchasing Managers' Index

The seasonally adjusted Purchasing Managers' Index (PMI) for May was 57.1 points, down from 61.9 points in April. Respondents reported a slowdown in expansion following the previous month's strong growth, the Hungarian Logistics, Purchasing and Stockholding Association (MLBKT) said on Thursday.

The newly measured seasonally adjusted BMI index value is the third highest for the month of May, MLBKT added.

All but one of the sub-indices covered by the survey declined, but they nevertheless point to expansion. The employment index value is 0.6% lower in May, but shows an expansion for the 20th time. The index has been hovering around 50.0 points for the last period, but expanded more slowly this month (52.8).

A BMI reading above 50% indicates a rebound in manufacturing activity, while a reading below 50% indicates a shift toward recession.

New orders maintained its strong expansion, but the index value fell 8.6%. The production volume index also indicates expansion, with the index value 9.8% lower than in April.

The delivery lead time value remained persistently below 50 points, falling 3. 3% in May.

The Purchased Stocks index shows a stable expansion, but its value decreased by 2. 9%.

External indicators continue to show expansion. The import index fell 4.3% and the export index fell 1. 9% in May.

The rise in purchase prices is persistent, with the 1.6 percentage point increase also indicating the intensity of the price increase.

The Purchasing Volume Index fell by 9.0 points. The index for inventories of finished goods fell 6.1% this month.