Slower Growth in the Purchasing Managers' Index

The seasonally adjusted Purchasing Managers' Index (PMI) for March fell to 55.3 points from 56.3 points in February, with respondents reporting slower growth than in the previous month, the Hungarian Logistics, Purchasing and Inventory Management Association (MLBKT) said on Monday.

Compared with the previous March figures, this year's figure is higher than the long-term average of 52.3 points and exceeds the average of 54.2 points for March in the previous three years. Since 1995, the seasonally adjusted PMI index value has been higher than the current March value for a total of six years.

Of the sub-indices surveyed, the MLBKT reported declining sub-indices except for the Purchased Volume Index and the Purchased Inventories Index. Only one change exceeded five percentage points. The Purchased Stocks index increased by 3.0 percentage points over the month, indicating a steady increase. The Purchases Volume index increased 1.6 points.

A reading above 50% for the PMI indicates a rebound in manufacturing activity, and a reading below 50% indicates a shift toward recession.

The employment index was 2.2 percentage points lower at 50.9 in March, but showed an eighteenth month of expansion. The index has also hovered around 50.0 points in the past.

The new orders index continued to show strong expansion, but the index value fell 1.0 percentage point. The production volume index also showed expansion, with the March index value 3.6 percentage points lower than in February.

The value of the delivery lead time, on the other hand, remained persistently below 50 points, with the index falling by 2.5 percentage points last month, after a sharp increase in February.

External indicators showed renewed expansion, although imports were 3.1 percentage points lower than in February and exports 3.0 percentage points lower.

The rise in purchaser prices is sustained, but the 7.2 percentage point decline points to a slowdown.

The index of finished goods inventories fell by 1.2 percentage points in March.