PMI Manufacturing Business Activity Index for February

The global manufacturing sector business activity index rose by 0.3 points to 50.3 points in February. 

This indicator suggests that there is sectoral expansion in the manufacturing market compared to the previous month. *The Purchasing Managers' Index (PMI) is an economic indicator based on surveys and reports of the private firms in the manufacturing and services sectors. The index provides insights into market sentiments and serves as a basis for investors and entrepreneurs in making trade decisions. An assessment over 50 indicates sector expansion, below 50 indicates economic downturn, and an assessment of 50 indicates no change compared to the previous month.

Saudi Arabia has emerged as a leader in manufacturing business activity again, rising from a two-year low level in January to 57.2 in February. Business activity grew at the fastest pace since September due to improved demand and tourism growth. Employment showed the sharpest increase in the last eight years. Price growth slowed down, and the confidence in market prospects have taken place. 

Russia's manufacturing activity index rose from a six-month low by 2.3 points to 54.7. Rapid growth in new orders and the resumption of employment growth led to the fastest sector growth since 2017. Production volume increased the most since 2019. Logistics problems and material shortages worsened supplier operations. Cost inflation accelerated and business sentiments strengthened to a seven-month high anticipating further growth in new orders. 

Kazakhstan's business activity index fell in February by 0.7 points to 49.8, indicating a deterioration in the country's manufacturing conditions. Production volumes have been declining for the fifth month in a row. Employment rates slightly decreased, but new orders grew. Selling prices have been increasing for the second month in a row, and market optimism remains high. 

The US manufacturing sector activity index rose from 50.7 in January to 52.2 in February, associated with the sector's fastest expansion since July 2022. The number of orders is growing rapidly, and export orders increased for the first time in three months. Job creation rates reached a 5-month high. Cost inflation has cooled down while selling prices grew. 

In China the PMI index has been in the positive zone for four consecutive months reaching 50.9. Production grew the most since May 2023, the growth of new orders accelerated, and overseas sales increased at the fastest pace in a year. Employment levels decreased as companies focused on cost reduction and efficiency enhancement. Raw material prices rose at the weakest pace in seven months. Sentiments strengthened in light of forecasts for an improvement in the global economic situation. 

The Eurozone manufacturing sector has been observing a negative activity index for the 20th consecutive month, with a slight decrease in February from the highest level in 10 months. The worst indicators were in Switzerland, Austria, and Germany, which contracted the most in four months. The overall rate of production contraction was the weakest in ten months. However, business confidence remains at its highest level since April 2023.