Hungary’s seasonally adjusted Purchasing Managers Index (PMI) fell to a more than two-year low of 47.8 in November from 48.2 in October, the Hungarian Association of Logistics, Purchasing and Inventory (HALPIM) announced on Thursday.
The November figure is the lowest since August 2009, when PMI was at 46.2, and it was also well below the long-term November average of 52.2.
The index dropped for the third time in the past four months, and was low both compared to the same months of earlier years and recent months, clearly indicating contraction. PMI indicated steady expansion in the manufacturing sector between July 2010 and April 2011, and a slowdown since May.
A PMI of over 50 indicates an expansion of the manufacturing sector compared to the preceding month, while a PMI of under 50 indicates contraction of the sector.
The PMI sub-indices reflected a contraction in October with the exception of four sub-indices.
The pick-up in employment, which lasted twelve months, has come to a halt, and indicates further contraction.
The production sub-index declined from October, indicating a decrease in production for the first time after 22 months.
The new orders sub-index rose slightly, but was the second lowest figure for this month since 1995.
The delivery time sub-index indicated a further lengthening of delivery times, for a record 24th consecutive month.
The purchased stocks sub-index fell again after a drop in the previous month.
The HALPIM PMI index and sub-indices are based on monthly surveys of 100 supply managers at manufacturing