PMI manufacturing index down to 4-yr low - English

China's Manufacturing Sector Expands Marginally

China's Manufacturing Sector Expands Marginally

Employment increased for the second month in a row and the pace of job creation held relatively steady, it said. Compared to the 12-month average of 59.2, the October PMI is 1.5% below the average.

United Kingdom manufacturing slowed in October, as output declined to its lowest level in over two years, prompting companies to cut jobs in response to Brexit uncertainty and growing trade tensions, according to the Purchasing Managers Index (PMI) report by IHS Markit/CIPS. Not only did employment expand for the thirty-first month running, but it also showed the strongest growth since July. That said, the rate of selling price inflation was mild in the context of historical survey data and much weaker than seen for costs.

Chinese factory activity slowed last month, official data showed yesterday, adding to a growing list of bad news for the Asian giant. Across the manufacturing economy, charges fell for the second straight month, albeit marginally.

Some companies linked slowing demand for new orders from the European Union to Brexit uncertainties, while others focused more attention on rising global trade tensions and weaker demand from the world auto sector.

This is the 15th consecutive month that the manufacturing PMI remained above the 50-point mark.

"China's economy has not seen obvious improvement", he said.

Manufacturing accounts for about 10% of Britain's economic output.

Meanwhile, firms registered a strong rise in buying activity amid reports of greater efforts to stockpile.

Cost burdens increased during October, the report found, fuelled by rising raw material prices, particularly for steel and timber.

October's manufacturing PMI came in at 51.1, down from 53.6 in September and far below the market consensus for an index reading of 53.0.

ISM reported that 13 of the 18 manufacturing sectors reported growth in August, including: Textile Mills; Electrical Equipment, Appliances & Components; Apparel, Leather & Allied Products; Plastics & Rubber Products; Food, Beverage & Tobacco Products; Computer & Electronic Products; Furniture & Related Products; Miscellaneous Manufacturing; Machinery; Transportation Equipment; Printing & Related Support Activities; Chemical Products; and Paper Products. "However, the rate of selling price inflation was mild, in the context of historical survey data", the survey noted.

This is the lowest level since the month following the Brexit referendum vote in June 2016.

It seems that Brexit and global trade uncertainty have really started to bite United Kingdom manufacturing, as new orders domestically and worldwide new business fell throughout October. 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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