July 01, 2026 (MLN): HBL Manufacturing PMI eased slightly to 50.8 in June 2026 from 50.9 in May, marking a second consecutive month of modest expansion in the sector.

The headline reading remained broadly stable, though underlying trends pointed to continued softness in domestic demand even as inflationary pressures eased somewhat, with external demand providing support to overall growth, according to a press release issued.

New orders fell for the second time in three months, reflecting subdued consumer and business spending, while export orders continued to strengthen on the back of improved product quality and ongoing efforts to acquire new clients.

This resilience in external demand helped drive manufacturing output higher for the first time in three months, underscoring the uneven nature of the recovery between export-led momentum and weak domestic activity.

Humaira Qamar, Head of Equities & Research at HBL Bank, highlighted the rebound in business sentiment as a key positive development for June, noting that future output expectations had risen sharply from May's low to reach their highest level so far this year.

She attributed the improved confidence to expectations of a more supportive cost environment and a strengthening economic backdrop, aided by a sharp correction in oil prices.

She emphasized that a sustained recovery going forward would depend on policy consistency, an uninterrupted energy supply, and continued regional stability.