United Kingdom manufacturing orders fall for first time since July 2016

Gladys Abbott
November 4, 2018

"Quebec appears to have felt the soft patch for global trade most keenly, with manufacturers reporting that new export work fell for the second month running in October". Washington has been threatening to slap tariffs on all Chinese exports to the USA, which could drag down China's economic growth if they become a reality.

'Overall activity was marred by a drop in export orders and continuing weak domestic demand as Brexit took another bite out of client confidence, ' Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply said.

With the overall level of new work declining, production at Malaysian manufacturers was cutback for the first time since June.

Level 50 is the threshold between the expansion and contraction of the cycle.

A stabilization of the Turkish Lira exchange rate helped lead to a marked slowdown in the rate of input cost inflation in October, it added.

"Further worrying news saw construction companies' confidence about output prospects for the next 12 months weaken to the lowest level for almost six years".

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Indian manufacturers were confident that output will be higher over the course of the next year, with sentiment underpinned by planned R&D investments and marketing initiatives. They are the most closely watched business surveys in the world, favoured by central banks, financial markets and business decision makers for their ability to provide up-to-date, accurate and often unique monthly indicators of economic trends. "And there was little encouragement in the forward looking balances of the survey either, as both the export and total new orders balances also fell".

The Caixin China General Services Business Activity Index for November, which tracks the growing services sector, will be released on Nov. 5.

Prime Minister Theresa May has so far failed to strike a deal with other European Union leaders, raising fears that Britain could leave the European Union without a transition deal.

Analysts attributed the low PMI to slower economic expansion and the escalating US-China trade disputes and said if the situation continued to worsen, the authorities may ramp up stimulus measures to keep the economy on track.

Production volumes expanded at the slowest pace since December 2016. With Brexit talks still deadlocked, business optimism remains low compared with its long-run average. And the labour market is seen going from strength to strength over the coming quarters, pushing the unemployment rate beneath 4%. Although the rate of output price inflation accelerated to the fastest since July, it remained well below that seen for input costs.

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