The Purchasing Managers Index (PMI) for the month of February 2023 was 61.1, 21% higher than the previous month of January 2023 PMI of 50.5 and compared to February 2022 with a PMI of 57.9 is 5.5% higher. For context the PMI is a measure of the economic course the manufacturing sector experiences where a value of 50 on the PMI indicates no change, a value above 50 indicates growth, and a value below 50 indicates a contraction.
Of the subcategories for the PMI 5 of them demonstrated positive change in February 2023 compared to February 2022 in year over year change, these subcategories with their PMI scores are: General (63.2; 26.4%), New Orders (63.2; 26.4%), Production (65.8, 23.2%), Clients Inventories (36.8; 12.2%), and Employment (65.8; 9.1%). The other 4 remaining subcategories experienced a negative change in February 2023 compared to February 2022, these subcategories with their PMI scores were: Own Inventories (60.5; -10%), Suppliers Delivery (50; -14.7%), Backlog (42.1; -15.8%), and Prices Paid (63.2; -23.7%).
Of the subcategories for the PMI only 2 demonstrated negative change in February 2023 compared to January 2023 in month over month change, those being: Backlog (42.1; -0.9%) and Suppliers Delivery (50; -4.8%). The remaining 7 subcategories obtained a positive change in February 2023 in month over month change, these subcategories are: New Orders (63.2; 58%), Production (65.8; 46.2%), General (63.2; 40.4%), Clients Inventories (36.8; 33.8%), Employment (65.8; 19.6%), Prices Paid (63.2; 14.9%), and Own Inventories (60.5; 0.8%). Notably, the Export Orders subcategory did not get a PMI value for February 2023 as of writing and as such was not included with the other subcategories, the released January 2023 PMI of 35 however demonstrated a -27.5% year over year change and a -11.4% month over month change.
Alongside the survey used to measure the PMI a series of supplemental questions were included to discover the challenges the manufacturing sector encountered. The most encountered challenges by the manufacturing sector in January 2023 were the Employment (36%), Shortage of Raw Material (29%), and Unreliable Utilities (21%). Other challenges the manufacturing sector encountered to a lesser extent was Absenteeism (14%), Cost of transportation (14%), Suppliers Delivery (14%), Cost of Materials (7%), High Energy Costs (7%), and Maintenance and Repair of Machinery and Equipment (7%).