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giftedviz.com November 18, 2018


Manufacturing sector activity rises in Oct on robust order flow: PMI

04 November 2018, 12:49 | Austin Hogan

Manufacturing growth slows in October - PMI

China's Manufacturing Sector Expands Marginally

Notwithstanding that Indian manufacturers were confident that output will be higher over the course of the next year and they increased their marketing activity and investment in research and development, the level of optimism was stymied by concerns towards future market conditions.

And despite the negative start to the fourth quarter, firms expected output levels to lift over the coming 12 months, with planned expansion into new markets and stronger sales forecasts supporting business confidence.

"Vietnamese manufacturers allayed fears of a protracted slowdown with strong rises in output, new orders and employment all recorded in October", said Andrew Harker, Associate Director at IHS Markit, which compiled the survey. The upturn in new orders accelerated to a five-month high and was widely attributed to greater client demand across the domestic market. At the same time, the rate of input cost inflation softened to its lowest since July 2017 and charges were lowered for the second month in a row.

"New orders fell below 60 for the first time in 18 months", he said.

October is the first full month after the latest United States tariffs went into effect. Encouragingly, supplier delivery times improved for the first time in six months in October.

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"China's economy has not seen obvious improvement", he said. Some companies reported that Brexit uncertainties had negatively impacted inflows of new work from within the EU. Anecdotal evidence pointed to transport shortages across North America and shipping delays at ports following typhoons in Asia.

Manufacturers in the United Kingdom have not only stopped hiring, but have also grown "increasingly defensive", with companies looking to protect cash flow and implement wider cost-cutting measures, including a decrease in purchasing activity and lowing inventories, Dobson said. Subcontractor rates also continued to rise at a relatively strong pace during the month.

The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) for October, released on Thursday, edged up to 50.1 from 50.0 in September.

Input price inflation remained marked in October, despite easing to a 28-month low.

Business activity, new orders, employment, inventory in the non-manufacturing sector all grew at a slower rate, recording 58.3 points, 56.4 points, 55.7 points and 57.6 points in October as against 58.1 points, 55.8 points, 55.4 points and 56.8 points recorded in the preceding month, respectively. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world's leading financial institutions.IHS Markit is a registered trademark of IHS Markit Ltd. and/or its affiliates.



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