Yes, he means transit pax, ie those arriving and departing on the same aircraft. His reference to LHR is mistaken - Heathrow has a lot of transfer pax but virtually no transit pax.
For the record (again):
Terminal pax = terminating (ie O&D) pax plus transfer (ie connecting) pax
Total pax = terminal pax plus transit pax
As a general rule, most inter-airport comparisons tend to be done on the basis of Terminal pax (ie including Transfers but excluding Transits). It's just a convention.
Returning to the topic of MAN's traffic make-up, the general dominance of leisure traffic is clear. According to the 2013 CAA survey, LHR had only 29.5% business pax, while MAN had 18.6%, LGW 13.3% and STN 14.1%.
See Table 2.2 of
http://www.caa.co.uk/docs/81/2013CAAPaxSurveyReport.pdf