Lahore - The manufacturing sector in Pakistan appears well poised to capitalise on the recent spate of favourable economic developments in the country. The recent cut in the policy rate is expected to stimulate further production and economic activity, allowing manufacturers to take advantage of declining input prices in the international market. Although an uptake in inflation appears imminent in the corning months, the prevailing level of inflation is significantly subdued compared to the recent past and is hoped to augment the purchasing power of consumers, adding to the demand for manufactured goods. Although structural bottlenecks such as power shortages and inconsistent taxation regimes continue to impede the performance of the manufacturing sector, the results of the 9th MCB PMI offer promising prospects of performance for the manufacturing sector. The MCBPMI recorded a value of 65.14 for the month of May 2015, against March’s readings of 65.13. While the manufacturing sector continued to grow for the 9th straight session, the pace of growth appears to have stagnated ‘as evidenced ‘by the negligible increase of 0.01 points in the index value compared to March 2015. The increase in the indices monitoring new orders and production indicates a moderate pick-up in consumer demand. A ‘reduction’ in delivery time, reported by surveyed companies, :points: towards improvement in supply chain operations, while an increase in the indices following prices paid and received by manufacturers is suggestive of increasing inflationary pressure. As a rule of thumb, a reading above 50 is taken to denote expansion in the manufacturing sector and economy, while a persistent reading below 42 is taken as an indicator of contraction in the overall economy and a precursor to impending recession.