Friday, December 2, 2022

The Manufacturing Activity Index falls in October 2022

The Monthly Index of Manufacturing Activity (IMAM) decreased in October 2022 in relation to September 2022, going from 49.9 to 49.3, showing decreases in the variables “employment”, “inventory of raw materials” and “supplier delivery time” and increases in the variables “sales volume” and “production volume”. The index fell for the second consecutive month below the 50.0 barrier.

The IMAM is a portrait of the manufacturing activity of a month in relation to the previous one. It is specified that when the IMAM is below the threshold of 50 points it reflects that the economic conditions and prospects of the manufacturing sector are considered unfavorable. Above 50.0, the outlook is favourable.

The five variables that are used for the conformation of the IMAN and with which the balance of opinion is established are: volume of sales, volume of production, behavior of employment, delivery time taken by suppliers, and behavior of inventories of inputs and raw materials from one month in relation to the other.

Regarding the variables examined in October in relation to September 2022, the result is the following:

“Employment” dropped from 58.8 in September to 57.3 in October. “Raw Materials Inventory” fell from 66.9 in September to 61.5 in October, and “Supplier Delivery Time” went from 52.3 in September to 44.4 in October, while “Sales Volume” went from 43.9 in September to 48.1 in October; “Production Volume” was shown at 46.0 in September and at 47.0 in October.

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