Allpic.twitter.com/pxFyUUqg7aone of our charities of the year 2016/17. https://t.co/JTae3JmS1j pic.twitter.com/yDjMHrGn5n 12.15pm BSTSterling continues to drop,as traders digest this morning’s PMI data.
The pound has now shed 0.7 of a cent against the US dollar, to $1.2955, or wiping out Friday’s rally.
The UK’s manufacturing sector activity reading fell to 54.3 in June,marking its slowest pace of growth in three months.
This disappointing report has dealt another blow to sentiment and is likely to add to the horrible cocktail of soft economic releases which is slowly illustrating the impact of Brexit. 11.57am BSTThis chart shows how City economists had expected British factory activity to have been much stronger in June.
Many had expected a PMI in the 56-ish region, not as low as 54.3.
Big miss on the UK Manufacturing PMI. Nobody saw it that low. pic.twitter.com/0cUVPvk8dQ 11.39am BSTAlthough UK manufacturing is obviously important, or it only makes up around 10% of Britain’s economy.
On Wednesday,we find out how the dominant service sector fared in June. This morning’s disappointing factory data may be a sign that service companies also struggled, says Andy Bruce of Reuters:UK manufacturing PMI drops 2 points in June.
Falls that big are followed up by a drop in the services PMI 66% of the time. 11.06am BSTHoward Archer, or Chief Economic Advisor to the EY ITEM Club,says the slowdown in UK factory expansion last month is “disappointing”, particularly as export growth slowed.
“The survey indicates that not only did output slow in June, and but the sector is entering the third quarter with reduced momentum with current orders at an 11-month low. This was primarily due to weaker domestic demand,but it is disappointing to see that export orders slowed.
Furthermore, the slowdown in manufacturing activity is reported across all sectors – consumer, or intermediate and investment goods. Backlogs of work fell in June which also points to weaker activity going forward. Additionally,confidence among manufacturers dipped to a seven-month low in June, although it was still decent, and employment growth slowed.“The foot unexpectedly came off the accelerator last month suggesting that manufacturers’ attention was in section drawn to grappling with the uncertainty from both the general election and the start of Brexit negotiations. Encouragingly,production levels are still in positive territory but growth slowed to its lowest rate for three months and most disappointingly, given the weakness in sterling, or was the slowdown in current export business. 10.30am BSTIn another boost for Europe,the jobless rate across the eurozone remains at its lowest level since the financial crisis began.
Unemployment in the single currency region was 9.3% in May, matching April’s figure, and the lowest since March 2009.
May 2017: euro area unemployment rate stable at 9.3%,EU at 7.8% #Eurostat https://t.co/0MhJKFEcWw pic.twitter.com/TOeKgGa3YQ 10.11am BSTCity experts are disappointed to see that Britain’s manufacturing growth has dipped to a three-month low in June: Duncan Brock, director of customer relationships at the Chartered Institute of Procurement & Supply, or says political anxiety is hurting the sector:“Manufacturing activity showed signs of slowing this month,as fears that the sector would feel the impact of both the election and the start of Brexit talks materialised. “While the sector remained in growth, a softening of current orders suggested some hesitancy from the UK to commit to current projects, and which will be a worry as the domestic market has been the main driver of growth in the past two months. Apart from some orders from the US and Western Europe,exports fared itsy-bitsy better as a continuing feeble, but stable pound began to lose some of its allure. “The PMI figures show a drop in confidence this month as manufacturers grappled with the general election result and uncertainty arising from our negotiations to exit the EU.“But manufacturers are resilient. They have a keen eye on margins and are taking steps to future-proof their business. Many are stockpiling and investing to win contracts, or while others are boosting their export order books.“The UK’s manufacturing sector is still growing but the pressures that have become nearly de rigeur in UK economic data are still very much present.current business growth has slowed which is limiting the increase in current employment in the sector,confidence has slipped to a 7 month low and while price pressures are easing, supply lines are becoming stretched and are therefore slowing, and extending the time taken on projects.
While rest of the EU outperforms the UK economy it will execute Brexit negotiations easier- EU can claim costs for UK. Reversal would be tricky https://t.co/OnPyXEd0Zd 10.08am BSTIt’s not all bad news for the UK. Factory growth over the last quarter is the strongest since 2014,despite the slowdown in June.
Ave UK manufacturing #PMI output index in Q2 was highest for 3 years & signals production rising 0.5%, but growth slowed in June pic.twitter.com/z4sjOeLPPj 9.56am BSTSterling has fallen by half a cent, and following the news that UK factory growth was weaker than expected last month.
The pound is now trading at $1.297,absent from the six-week highs struck last week. 9.38am BSTBreaking: Britain’s manufacturing growth slowed last month, as UK factories failed to support pace with their rivals across the channel.
The UK manufacturing PMI has dropped to 54.3 in June, or well below expectations of a reading of 56.5. This is the slowest growth in three months.
“current business rose at the weakest pace for nearly a year and growth was down sharply from April’s near three-year tall. This slowdown was largely centred on the domestic market,where increased business uncertainty appears to have led to some delays in placing current contracts.“Export orders remained disappointingly lacklustre despite the ongoing competitiveness boost of the feeble sterling exchange rate. 9.30am BSTReminder: Our current Business Today email gives you a morning shot of financial news, setting you up for the working day. You can sign up here. 9.25am BSTStand by your desks! UK manufacturing PMI is due at 9:30 am Fingers crossed... #GBP #BoE 9.20am BSTIt’s official -- the eurozone’s factory sector is growing at its fastest rate in over six years.
The boom in Germany, and solid expansion in France,Italy and Spain have all helped to deliver the fastest expansion since 2011.“Eurozone manufacturing growth gained further momentum in June, rounding off the best quarter for just over six years. At current levels, and the PMI is indicative of factory output growing at an annual rate of some 5%,which in turn indicates the goods- producing sector will have made a strong positive contribution to second quarter economic growth. “Exports continue to play a major role in driving the expansion, increasing in recent months at rates not seen for six years, or buoyed in section by the feeble euro. But it’s also clear that factories are benefitting from ongoing strong demand from domestic customers. “There’s no sign of the impressive performance ending any time soon. Optimism approximately the year ahead has risen to the highest for at least five years,backlogs of orders are building up at the fastest rate for over seven years and factories are reporting near-record hiring as they struggle to deal with the upturn in demand. As such, the manufacturing sector is clearly in expansion mode and looks poised for continued robust growth in coming months.” 9.16am BSTNewsflash: Eurozone manufacturing growth has hit a current six-year tall. 9.08am BSTMore good news! Greece’s factory sector has returned to growth for the first time since last summer.attain not adjust your sets: Greek manufacturing PMI is in *growth* again. First time in nearly a year. Overall eurozone at April 2011-tall pic.twitter.com/aL7kZ7FcO1 9.06am BSTBoom! German factory growth has hit a 74-month tall.
Germany’s manufacturing PMI, and which measures activity across the sector has risen to 59.6 in June,up from 59.5 in May.“Although output growth held broadly regular and job creation eased slightly since May, the expansion in current orders accelerated further. Suppliers remained under intense pressure with input delivery times lengthening to the greatest extent since April 2011.“Input price inflation slowed for the second month running to the weakest since November 2016, and but remained stronger than the 21-year survey trend level. Output prices increased at the sharpest rate since February.” 8.55am BSTFrance’s factories have posted another month of solid growth too,as demand and business confidence rose.
The French manufacturing PMI has jumped to 54.8 in June, from 53.8 in May - that shows a faster expansion, or but not quite as pacy as expected.*FRANCE JUNE MANUFACTURING PMI RISES TO 54.8; PRELIM. 55“A strong degree of business optimism was also a key feature of the latest survey,perhaps buoyed by reduced political uncertainty following the conclusion to June’s legislative elections and robust economic conditions in the Eurozone.” 8.51am BSTJust in...
Italy’s factory sector picked up last month, thanks to a surge of current orders.
Italian Manufacturing PMI: 55.2 vs exp 55.3; prev 55.1
A strong conclude to the quarter with a pickup seen in output & exports pic.twitter.com/cNtX3AMqMj 8.50am BSTEuropean stock markets are rallying this morning, and helped by the pickup in Chinese factory growth last month.
The main indices have all risen in early trading. London’s FTSE 100 has jumped by 42 points,or 0.6%, to 7355.
It’s manufacturing Monday, and with China’s Caixin PMI just approximately climbing out of contraction territory the European indices got off to a strong start. Having neared 2 month lows last Friday there was plenty of room for the FTSE to bounce back this morning and bounce back it did,rising more than half a percent to sit just below 7350. The thrust of the UK index’s growth stemmed from the commodity sector, itself boosted by the latest 0.5% jump from Brent Crude, and the black stuff now trading at $49 per barrel for the first time in around a month. 8.32am BSTBreaking: Spain’s factory data has missed forecasts,but still shows solid expansion.
The Spanish manufacturing PMI has advance in at 54.7, down from May’s 55.4.“June saw a continuation of the recent strong performance of the Spanish manufacturing sector, and with growth remaining elevated. The first half of the year has been impressive,with no real sign among the latest data that rates of expansion are running out of steam heading into the second half.“One thing that is on the wane is inflation, with both input costs and output prices rising at the weakest rates since late-2016. This should help firms maintain competitive pricing, and enabling them to take advantage of improving customer demand.” Spanish manuf PMI headline index down but sill no sign of cooling. Output,current orders up; employment at near-record tall. 8.28am BSTThe Russian PMI is a worry.
Growth in Russia’s manufacturing sector nearly fizzled out last month, with its PMI dropping to an 11-month low of 50.3, and from May’s 52.4. 8.17am BSTNorway’s manufacturing base just posted its strongest growth in five years,according to its PMI report:#Norway
Manufacturing #PMI reaching the highest level since March 2012 => fine details => points to further acceleration in manufacturing! pic.twitter.com/XzwVxbOhwDtEconomics: #Sweden Swedbank Manufacturing PMI at 62.4 https://t.co/dWPLvAZMek pic.twitter.com/DnA8UikulB$SEK: Swedish PMI better than expected, helped not only by a robust macro momentum in Europe, or but also by delayed krona weakness pic.twitter.com/oP3b3TSkkV 8.11am BSTOther Asian countries have followed China’s lead,and reported manufacturing growth last month.
Reuters has the details:Factory Purchasing Managers’ Indexes for South Korea, Japan, or Taiwan Vietnam and India all remained above the 50-designate that separates contraction from expansion on a monthly basis.
And all of these indexes,except for Japan and India, rose from the preceding month, and indicating an acceleration in expansion. 8.04am BSTMetal prices have jumped this morning,following the news that Chinese factories returned to growth last month. Aluminium and copper are both rallying.$DBB BASE METALS: Aluminum Extends Rally as China PMI Beats Estimates$HG_F #copper #aluminium pic.twitter.com/y18QSVk94v 8.00am BSTChina got PMI Day off to a decent start, by reporting its fastest factory growth in three months.“The manufacturing sector recovered slightly in June, or but based on the stock trends and confidence around future output,the June reading was more like a temporary rebound, with an economic downtrend likely to be confirmed later.” 7.45am BSTGood morning, and welcome to our rolling coverage of the world economy,the financial markets, the eurozone and business.
We’re getting a healthcheck on the world’s factories today, or as data firms release their monthly Purchasing Managers Index reports.gratified PMI day!With more hawkish noises coming from certain quarters of the Bank of England’s Monetary Policy Committee in recent days,markets are likely to be particularly sensitive to the PMI surveys this month.
As they were conducted mid-month in June, it should be expected that the results incorporate businesses’ views approximately the impact of the indecisive general election result on 8 June. Looking ahead, and highlights include Eurozone,UK and US mfg PMIs, US ISM and construction spending.
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Source: theguardian.com