Sector contracts but new orders increase

THE MANUFACTURING sector here contracted slightly in February, but output rose and new orders increased.

The NCB purchasing managers index showed some signs of stability last month, with the headline figure falling to 49.7, just below the 50 mark that separates expansion from contraction.

That compares to 48.3 in January.

Output was higher in the month, however, at 50.4, bringing to an end three months of decline.

There were other surprises in the NCB data, as new orders climbed to 50.1, but export orders fell to 49.7, from 50.9 a month earlier and fractionally below the expansion mark.

“When we look at the internals of the new order numbers though,” NCB chief economist Brian Devine said, “we would view the figures as a positive and would not put too much weight on the exports number.”

Input costs continued to rise, the survey noted.

“In spite of this,” NCB added, “manufacturers continued to lower their output prices. Charges have decreased continuously since August 2011, and the rate of decline was sharper than that seen in the previous month.”