In the changing situation, the slowdown and sluggishness of the economy observed after June this year was very worrying. Despite this, the main pillars of the economy are agriculture, industry, services and construction sectors, along with other construction workers. Despite various obstacles, they have remained active in production and service delivery. Based on which the economy started to move upwards little by little. As a result, the economy, which had been in contraction mode, returned to expansion mode last October. Through this, after three months, the economy of the country started to grow.
Such information has become clear in the 'Purchasing Managers' Index' or PMI index report prepared on the updated state of the economy. The Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange (PE) jointly publish this index every month by determining the survey-based criteria of how much the economy has contracted or expanded in the four main sectors: agriculture, industry, services and construction.
According to the PMI index published by MCCI on Thursday, the October economy increased by 6 points compared to September to 55.7 points. At this time, the main four sectors of the economy have expanded. This means that the economy has moved out of the bracket of contractionary trend and started walking in the expansionary trend.
This PMI index is formulated out of a total of 100 points. A PMI value below 50 means that the economy is contracting. More than that means expansion.
According to the report, the agriculture PMI index among the four main sectors of the economy stood at 53 points in October, as against 47 points in the previous month. The value of the manufacturing sector index was 56.6 points. This sector, however, continued to expand in October as well. In that month the value of this index was 52.6 points. Apart from this, the PMI value of construction sector was 50.1 points, which was 46 points in the previous month. The service sector PMI value was 56.9, compared to 49.4 in the previous month.
The October report said new business and other activity in the agriculture sector picked up, although the employment rate in the sector was declining. New businesses in the manufacturing sector, exports, factory production—all areas have picked up. But the contraction continues in terms of imports, employment, supply of this sector. The construction sector expanded last month but the pace was the slowest among other sectors.
According to the report, challenges remain despite the economy returning to expansion after three months. Movement of people of different classes and professions, lack of desired improvement in law and order situation, slow down in administrative work—these are identified as challenges in the report. In this context, it is said that the expansion of the main four sectors of the economy will be correct in the future, but the pace will slow down.
Earlier last July, the main four sectors of the country's economy contracted. The PMI index fell to 36.9 from 63.9 in June. That is, the value of PMI index in the country decreased by 27 points within a month. After that the situation gradually improved. The PMI index was 49.7 in September, which was 43.5 in August.
