Erste Romanian unit BCR launches PMI index

The new BCR index is the first of its kind in Romania, which until now was the only major economy in Central and Eastern Europe without a PMI index, according to a press release issued by BCR.

"The index indicates the overall health of our economy and serves as a compass for all stakeholders. It enables financial institutions to better assess risks and have a more efficient financial planning. For authorities, it provides a factual basis for policy-making that aligns with real economic conditions, while for companies, harnessing this information means optimizing operations, better supply chain management and improved investment strategies," said BCR chief economist Ciprian Dascalu.

The PMI is released on the first working day of each month and is compiled by financial analytics company S&P Global, which started sending out questionnaires to purchasing managers of approximately 400 manufacturers last year.

"We expect the new BCR Romania Manufacturing PMI will quickly become established as a key indicator in the national economic calendar”, added Luke Thompson, managing director at S&P Global Market Intelligence.

The first PMI report, released on Friday, found that in February, new orders fell at the fastest pace in the last four months, leading manufacturing companies to scale down production.

The PMI is a weighted average of five indices related to the manufacturing industry in Romania. These indices are New Orders, which contributes 30% to the headline figure; Output, which contributes 25%; Employment, with a 20% contribution; Suppliers' Delivery Times, with a 15% contribution; and Stocks of Purchases, which contributes 10%.

BCR's preliminary net profit climbed 33% to 2.321 billion lei ($504.7 million/467 million euro) in 2023. The total assets of BCR Group increased to 108.9 billion lei at the end of 2023 from 98.9 billion a year earlier.

BCR Group comprises lenders Banca Comerciala Romana and BCR Banca pentru Locuinte as well as BCR Pensii, BCR Leasing IFN and BCR Chisinau.

(1 euro=4.9699 lei)