UK Markit August mftg PMI SA 56.9 vs 55.0 exp

UK Markit August mftg PMI SA 56.9 vs 55.0 exp

Factory output grew unexpectedly in August to bring the country's manufacturing sector back into growth zone with a surge in new business orders after the GST-related contraction in July, a monthly survey showed on Friday.

China's manufacturing sector has been posting solid growth thanks to domestic infrastructure spending and a recovery in exports.

Manufacturing output declined to 54.3 from 56.3, though some survey respondents reported having a greater number of projects in the pipeline.

Market forces continued to be supportive of the sector this month, as purchasing activity was strong, more jobs created and new orders rose across all three sectors, for companies large and small.

The rate of expansion in the United Kingdom manufacturing sector accelerated again in August.

However, there has been a marked discrepancy in recent months between the PMI readings of the manufacturing sector and official data which has painted a weaker picture.

Despite the strong performance in August, there could still be clouds ahead. The currency's depreciation also contributed to purchase-price gains accelerating for the first time in seven months, though at a slower pace than seen at the start of the year.

A day earlier ratings agency Moody's adjusted China's 2017 growth expectation to 6.8 percent based on the first and second quarter - which both came in at 6.9 percent. "In addition, manufacturers' optimism regarding future production growth only edged up in August to its five-year average, suggesting that they will invest only cautiously in extra capacity".

Input prices had risen at the fastest pace since March because of supplier shortages and transportation problems, the release said.

"August's PMI results showed that manufacturers in India recovered quickly from the sharp slump that followed the introduction of the Goods & Services Tax", said Pollyanna De Lima, Principal Economist at IHS Markit and the author of the report, as per PTI.

Related Articles