Wednesday, 19 February, 2020

Caixin PMI signals expansion in manufacturing

Caixin PMI signals expansion in manufacturing Caixin PMI signals expansion in manufacturing
Ginger Lawrence | 03 September, 2019, 16:12

"Domestic political uncertainty continued to hold back the United Kingdom construction sector in August, with survey respondents indicating that delays to spending decisions had contributed to the sharpest fall in new work for over 10 years", IHS Markit economist Tim Moore said.

The US tariffs on Chinese goods worth of $110 billion took place on September 01 even if China canceled previously announced tariffs to be levied this month while waiting for the trade talks. The higher above 50 the faster the expansion, while the further below 50 the greater the contraction.

The survey comes after official figures showed India's economy grew at an annual rate of 5 per cent last quarter, its slowest in more than six years and significantly weaker than 5.7 per cent in a Reuters poll.

IHS Markit said its Malaysia Manufacturing PMI is compiled from responses to monthly questionnaires sent to purchasing managers in a panel of around 400 manufacturers.

The survey also showed that sentiment about future output fell to a record low, pointing to pessimism among manufacturers.

However, Howard Archer, chief economic adviser to the EY Item Club, said that could be too pessimistic.

Eight bodies recovered, dozens still missing after blaze on boat
No cause for the fire has been identified and Brown said at this stage there was no reason to believe it involved a criminal act. The Conception was on the final day of a Labor Day weekend cruise to the Channel Islands when the fire erupted.

Operating conditions faced by Chinese manufacturers improved slightly in August, with firms registering the quickest increase in production for five months.

The official manufacturing PMI inched down from 49.7 in July to 49.5 in August, the fourth consecutive month of contraction, the National Bureau of Statistics said on Saturday.

Subdued domestic demand, weak output and increased cost pressures weighed on business momentum.

New Zealand's Terms of Trade Index, China's Caixin Manufacturing PMI decorate economic calendar when the U.S. markets are off for the Labor Day.

More positive news came from Japan's factory output, with data on Friday showing production bounced more than expected in July, though it was expected to fall again next month, signaling further strains ahead.

Any further sign of weakness in domestic demand could add pressure on the Bank of Japan to ramp up stimulus at its rate review on September 18-19, which follows the European Central Bank's rate decision and that of the U.S. Federal Reserve. The country has also an impending sales tax hike due in October. "The subindex for stocks of purchased items fell further into negative territory, reflecting manufacturers" growing reluctance to replenish inventories.