May 2 (SeeNews) - Romania's manufacturing Purchasing Managers' Index (PMI) climbed to 51.5 in April from 49.3 in March, marking the index' first positive reading since the beginning of data collection in July 2023, Austria's Erste Group [BSE:EBS] said on Thursday.
The first reading above the 50 mark, which separates growth from contraction, indicates improved business conditions, with both output and new orders driving the growth, Erste said in a press release.
The PMI is a weighted average of five indices related to the manufacturing industry in Romania. These indices include new orders, output, employment, suppliers' delivery times, and stocks of purchases.
"Both output and new orders components registered above 50 values this month and were the main drivers for the PMI evolution. All components except the suppliers’ delivery times had a positive directional contribution in April. This month’s reading might be the first clear sign of rebound for the Romanian manufacturing sector, though its recovery is expected to be non-linear," Erste noted in the report.
Romania's manufacturing PMI was launched earlier this year by Banca Comerciala Romana (BCR), the Romanian unit of Erste. The PMI is released on the first working day of each month and is compiled by S&P Global, which started sending out questionnaires to purchasing managers of about 400 manufacturers last year.
BCR's consolidated net profit rose 10.1% year-on-year in the first three months of 2024, reaching 620 million lei ($133.3 million/124.6 million euro).
BCR Group comprises lenders Banca Comerciala Romana and BCR Banca pentru Locuinte as well as BCR Pensii, BCR Leasing IFN and BCR Chisinau.
Erste Group's shares traded 0.73% higher at 220.5 lei as at 1359 CET on Thursday on the Bucharest bourse.
(1 euro=4.9764 lei)
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