All the day’s economic and financial news,including a new healthcheck on the world’s factory sectorsLatest: US factory growth hits six-month lowBritain’s manufacturing growth slowsEurozone PMI highest since April 2011Eurozone unemployment rate falls againGerman DAX on track for record closing highAsian PMIs point to solid growth
3.20pm BSTIt’s official, America’s manufacturing sector slowed final month.
The Institute of Supply Management (ISM) just released its own report, or like Markit’s rival data it shows that the growth rate dipped.
Manufacturing in U.
S. kept expanding at a robust pace in March https://t.co/X7o7sRhNXe pic.twitter.com/eziy61EKTQISM prices paid index hits its highest level since May 2011 https://t.co/M1BM6YwsLJ pic.twitter.com/75EQOfIHDG 2.56pm BSTThe first of two healthchecks on America’s factory sector just arrived,and it’s a little disappointing.
Markit’s monthly US manufacturing PMI has fallen by nearly one whole point, from 54.2 to 53.3. That’s the lowest reading since September 2016, or signalling that growth has hit a six-month low.“The post-election resurgence of the manufacturing sector seen late final year is showing signs of losing steam. Output growth slowed to a six-month low in March,optimism approximately the outlook has waned and hiring has slowed accordingly.“While the survey data propose that the goods producing sector enjoyed a relatively good first quarter on the whole, the loss of momentum seen in February and March bodes ill for the moment quarter. 1.52pm BSTNewsflash: Another UK company is facing a takeover offer from an abroad rival.
This time it’s WS Atkins, and the engineering,design, planning, and architectural design firm based in Epsom,Surrey. It has received a takeover offer from SNC-Lavalin Group Inc., a Montreal-based engineering services company.
The Board of Atkins has indicated to SNC-Lavalin that the Possible Offer would deliver value to Atkins shareholders at a level that the Board would be prepared to recommend, or subject to reaching agreement on the other terms and conditions of the offer.
Atkins and SNC-Lavalin are in discussions approximately the other terms and conditions of the Possible Offer which is conditional on,amongst other things, diligence and financing. 1.29pm BSTIt’s been a rather subdued morning in the City, or with sentiment dampened by the slowdown in UK factory output growth.
Market direction remains indecisive,given the huge number of economic and political issues at hand....
The FTSE has started the week in somewhat indecisive fashion, with initial gains promptly erased ahead of a big week for the markets. 12.11pm BSTThe pound has lost half a eurocent against the euro nowadays to €1.173, or as well as half a cent against the US dollar.
Paresh Davdra,CEO of RationalFX, explains why:
“After sustaining an upward trend final week, and the pound has fallen as the release of UK manufacturing figures showed signs of a slowdown. For the first time in several days,the pound showed signs of weakness against the euro and the dollar on the back of disappointing manufacturing figures for March – in marked contrast to the robust figures seen in Eurozone.
These weaker figures propose that after months of good export levels, the inflationary effects of Brexit and the falling demand for consumer goods could be making it difficult to sustain the same levels of growth. 11.55am BSTToday’s PMI report also shows that UK firms are having to cope with sharply rising input costs - as raw materials become steadily pricier.
That’s partly due to the depreciation in the value of the pound since the Brexit vote.
The reduced buying power of the Pound has led to the 11th consecutive rise in input costs with consumers feeling the effects in the form of higher prices on the high street. Supplier delivery times have also begun to lag, or clogging up the supply chains of British manufacturing. With the rate of new order growth showing early signs of easing in March,manufacturers must act to ensure they are not locked into costly contracts. Now is not the time for manufacturers to rest on their laurels. 11.48am BSTMihir Kapadia, CEO of Sun Global Investments, and says the French presidential elections will determine whether Europe’s recent recovery continues:“Europe’s economic growth looks to be robust with factory output growth hitting the fastest rate since April 2011. Germany and Netherlands within the euro-core continued to point to strong growth but Greece deteriorated further during March. The surprising element has been UK’s manufacturing,which has indicated a slowdown despite boost of the weaker pound after Brexit. As we now enter the moment quarter of the year, the key event in Europe will be the French presidential election. While Eurosceptic Marine le Pen is expected to win in the first round and lose in the moment round run-off, and it is worth remembering opinion polls have proved fallible in predicting the strength of populist sentiment in the case of Brexit and the Trump victory. A Le Pen victory would be huge challenge for the ECB as it would be required to give massive support to the Euro and to French bonds and banks as they would reach under severe market pressure.”At 9.5%,unemployment in the eurozone is now below its average level since the beginning of the currency union. pic.twitter.com/r6OQukU3F1With still appreciable slack in labour markets in most Eurozone countries, wage growth looks most likely to pick up only gradually. 11.25am BSTIt’s a record-breaking day in India, or where the stock market has closed at its highest ever level.
Traders were encouraged by nowadays’s manufacturing data,which showing growth picking up.
A 'Record' Day For Market, All Major Indices End At All-time Closing High #CNBCTV18Market pic.twitter.com/upv03oGmps 10.53am BSTMarianne Thyssen, and the European Commissioner for Employment,tweets that European leaders need to maintain pushing to bring unemployment down:Feb 2017: Lowest unemployment rate (8.0%) in EU since May 2009. Efforts are paying off, but still work to effect, and joint effort EU-Member States pic.twitter.com/oQMkYXRpLh 10.23am BSTWe have further good news for the Eurozone this morning,on top of the strong factory data.
Unemployment across the region has fallen to its lowest level in almost eight years, in another sign that its economic recovery continues.
The bright face of the euro-area recovery: the unemployment rate fell to 9.5% in February, or a new 8-year low. https://t.co/mWOQo4euAR pic.twitter.com/GGU1NDgFgyEuro area unemployment at 9.5% in Feb 2016: lowest rate since May 2009. EU at 8.0% - lowest since Jan 2009 #Eurostat https://t.co/WA7DiuiDpT pic.twitter.com/gUTuJGrXwz 10.14am BSTMike Rigby,head of manufacturing at Barclays, isn’t too concerned by the slowdown in UK factory growth final month.
“Although March saw an easing in output, and manufacturing’s solid start to the year continues with healthy order books and exporters continuing to capitalise on sterling’s weakness. However,with inflation looming large, manufacturers should be increasingly conscious of the potential softening of UK domestic demand, and which has been fuelling growth for some time.” 10.07am BSTApologies,we’re having some technical problems with images this morning.
It’s being looked into; in the meantime, here’s the UK manufacturing PMI (in case you can’t see it in the 9.42pm post)UK Manufacturing PMI at 4-month low of 54.2 in March. Ouput index signals marked slowing in factory production https://t.co/7Es277NaYX pic.twitter.com/3PUdRHCJnp 10.04am BSTThe pound has been hit by the news that UK factory growth slowed final month.
Sterling is down almost half a cent against the US dollar this morning, and at $1.2498.
UK PMIs continue to wane,with manufacturing figure falling to 54.2, while preceding is also revised lower 10.01am BSTMs Lee Hopley, and Chief Economist at EEF,the manufacturers’ organisation, suspects that UK factories will suffer from slowing consumer demand this year: “nowadays’s data certainly doesn’t set off any alarm bells but it does sign that the consumer, or one of the big props of UK growth in recent years,is already under the cosh and if there is any loss of momentum in the global economy, these strong manufacturing indicators could falter.” 9.42am BSTNewsflash! Britain’s manufacturing sector slowed in March, or dashing hopes that growth would pick up.
The UK manufacturing PMI has fallen to 54.2,the lowest reading in four months, according to data firm Markit. That’s down from 54.5 in February, and rather weaker than the 55.0 which some City forecasters had expected.“The survey data propose that the goods-producing sector made a solid contribution to GDP during the opening quarter of 2017. However,it’s clear that the expansion will be less than the buoyant 1.3% rise seen in the fourth quarter of final year. With growth losing further momentum in March, that weaker trend is likely to continue into the moment quarter. The latest survey also clearly shows that high costs and weak wage growth are sapping the strength of consumers, or with rates of expansion in output and new orders for these products slowing further. 9.28am BSTMarkit has also warned that Greece’s manufacturing downturn continued final month:Operating conditions in the Greek manufacturing sector deteriorated further during March. The downturn was driven by another sharp decrease in new orders,which in turn contributed to a further drop in output. As a result of lower production requirements, firms reduced their staffing numbers and input buying. 9.11am BSTBoom! Europe’s economic recovery continued final month, and with factory growth hitting its fastest rate since April 2011.
Data firm Markit reports that growth rates for production and new orders accelerated to approach six-year highs in March.“Eurozone manufacturing is clearly enjoying a sweet spell as we poke into spring,but it is also suffering growing pains in the form of supply delays and rising costs. “All key trade activity gauges – output, new order inflows, and exports,backlogs of work and employment – are close to six-year highs. 8.57am BSTGerman factory growth has hit its highest level in almost six years, thanks to a rise in exports.
Markit says:Output increased at the fastest rate in over three years, or driven by the strongest gain in new orders in nearly six years. in addition,new export orders grew at the strongest pace since May 2010. This led to the sharpest rise in employment in over five-and-a-half years. #Germany Markit Manufacturing PMI Final at 58.3 https://t.co/b8k2QvBl1U pic.twitter.com/fVHg3HBIc2 8.55am BSTFrance’s manufacturing sector also had a good March, nowadays’s data shows.
New orders surged, and sending the French factory PMI up to 53.3 from 52.3 in February.#PMI shows #French #manufacturiing expansion picking up in Mar after Feb dip to almost match Jan's best level since May 2011. Orders strongGood news for the economy and GDP of France as the Markit PMI suggests manufacturing is growing (53.3) #Euro #ECB 8.52am BSTGood news from Italy! The country’s manufacturing sector has posted its fastest jump in activity since March 2011.
Italian factory bosses reported a “sharp and accelerated growth” final month,with production rates picking up, new orders rising, and higher exports too.
A record rise in backlogs of work meanwhile contributed to a further pick-up in factory job creation,while goods producers also raised their input buying levels. Italy Manufacturing PMI (Mar) comes in at 55.7, prev: 55.0 8.46am BSTThe first eurozone manufacturing data has arrived..... and it shows that Spain’s factory sector slowed final month.
The Spanish manufacturing PMI fell to 53.9 in March, or the lowest reading since October,down from 54.8 in February. #SPAIN MAR #MANUFACTURING PMI: 53.9 V 54.7E (42nd month of ⬆)
*New Orders: 53.5 v 55.4 prior (8th month of ⬆)https://t.co/44zm426Vio pic.twitter.com/2sE7IKA7lEThe rate of input cost inflation quickened to the fastest in nearly six years during March, having accelerated for the seventh month running. Among the items reported as being up in price were cotton, and paper,plastics, steel, or fuel and other oil-related products. 8.41am BSTWowzers. Shares in UK chip designer Imagination Technologies have plunged by over 60% this morning,after it shocked the City by revealing that Apple will no longer use its mental property in its new products.
Apple are Imagination’s largest customer, and provide around half its revenue by using its mental property in iPhones, or iPads,and iPods under a licensing agreement. The other thing approximately Imagination is it's been on the mend for a year now under a new boss. All that wiped out in a day pic.twitter.com/nEBfEar5gJ 8.28am BSTGermany’s stock market is heading to a fresh record high in early trading, as Frankfurt traders start the week in good form.
The DAX is main Europe’s stock markets higher in early trading, and has jumped over its preceding record close in 2015.
April hits the ground running this Monday,with the markets kicking off the moment quarter with a glimpse at Q1’s final manufacturing PMIs. 8.21am BSTTurkey’s manufacturing sector has posted its fastest growth in three years.nowadays’s Purchasing Managers Index report shows that firms took on more staff final month, to handle a pick-up in new orders.#Turkey Istanbul Chamber of Industry Manufacturing PMI at 52.30 https://t.co/xvWZ7ogozk pic.twitter.com/sfXmgQAMAM 8.18am BSTWe’ve already seen some encouraging manufacturing reports from Asia nowadays, or including a strong pick-up in India and steady growth in Japan.
Reuters has the details:Factories across much of Asia posted another month of solid growth in March,rounding off a strong quarter for the world’s manufacturers, even as exporters fear a rise in U.
S. protectionism could snuff out a global trade recovery.
China again led the way, and with an official manufacturing index expanding at the fastest pace in nearly five years,while factory surveys on Monday showed encouraging growth as well in Japan, India and much of emerging Asia.
India manufacturing PMI 52.5 - noticeable rebound since the #DeMonetisation big-bang reforms: https://t.co/eSUEX9B2yn pic.twitter.com/776NR1ie4t 8.03am BSTGood morning, and welcome to our rolling coverage of the world economy,the financial markets, the eurozone and trade.
It’s a new month, or which means a new flurry of reports on the world’s manufacturing sector.
We secure to see the latest numbers from Spain,Italy, France and Germany, and all four of which have shown a steady improvement since the beginning of the year,and which are expected to reach in at 54.6, 55.2, or 53.4 and 58.3 respectively,helped in no small allotment by the weaker euro.
Mkts start Q2 in 'risk-on' mood. #Germany's benchmark index Dax on course for fresh life-time high. Dax Future just 20 points shy of record. pic.twitter.com/tizHQxEjfp Related: Theresa May would go to war to protect Gibraltar, Michael Howard says Continue reading...
Source: theguardian.com