30/4/2018/Cordros Report
- Manufacturers and service providers reported sustained improvement in overall business conditions since April and May 2017 respectively.
- Both the headline composite manufacturing and non-manufacturing PMIs printed at 56.9 and 57.5 respectively, up from 56.7 and 57.2 a month before.
- As a leading indicator, the details of the survey suggest that output growth maintained a positive trajectory in the second quarter of the year.
- Thus, there is a case for positive corporate performance in Q2-18, sustained interest in risky assets, amid stronger expectation for lower yields on government securities.
- The continued improvement in the survey result is consistent with encouraging conditions in the overall economy.
- There are no sufficient reasons to expect contracting PMIs over the rest of 2018, as the impact of the positive drivers supporting the encouraging figures deepens further.