HBL PMI manufacturing activity hits highest level since war began
KARACHI: The HBL Pakistan Manufacturing PMI inched up to 51.8 in August 2026, from 51.7 in July, reaching its highest level since the onset of the war. Although the pace of expansion remained modest, underlying demand conditions continued to improve, supported by a combination of stronger domestic orders and sustained growth in export demand. New orders expanded at their fastest rate in five…
Karachi witnessed a significant surge in the HBL Pakistan Manufacturing PMI, reaching its highest level since the conflict escalated. The figure stood at 51.8 in August 2026, up from 51.7 in the previous month. Although the growth rate was moderate, demand conditions were improving due to increased domestic orders and consistent export demand growth.
New orders saw the fastest increase in five months, indicating better product quality and competitive pricing. Export orders also rose for the fourth month in a row, reflecting robust external demand. This positive order environment bolstered manufacturing activity, with output growth resembling July's pace. However, manufacturers remained cautious about expanding production due to continuous inflationary pressures.
Purchasing activity rose for the third month straight, and inventories expanded as a precaution for anticipated stronger demand. Employment levels stayed largely unchanged, with selective hiring to meet the surging orders balanced by ongoing cost-cutting efforts. Supply-chain conditions further improved, with delivery delays hitting their lowest level since November 2025.
Humaira Qamar, Head of Equities & Research at HBL, commented that business confidence regarding output over the next year rose to one of the highest levels this year, fueled by expectations of sustained sales growth and reduced price pressures. While inflation is expected to ease by the second half of FY27, the disinflationary trend is projected to be more gradual and less impactful than earlier estimated.
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