India factory output growth hits four-month high in October

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Even with a mild sequential decline, manufacturing output in October remained strong, according to the monthly Manufacturing Report on Business, which was released by the Institute for Supply Management (ISM) today.

Looking ahead, manufacturers are optimistic overall that their production volumes will rise in the next 12 months.

A sub-index showed total new orders increased at a faster pace, though growth in export orders moderated slightly.

Faced with higher costs and sluggish demand, Chinese manufacturers have been reducing staff levels for about five years straight.

"New orders fell below 60 for the first time in 18 months", he said.

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But at least for the time being, the government will not fall back on its battle-tested practice of large-scale monetary and fiscal stimulus.

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.

Canadian manufacturers reported a sustained upturn in overall business conditions in October, but the rate of improvement slowed for the fourth month running.

"Aside from the demand-side impact of the SST, there were reports of general underlying market weakness hampering new business growth, which restricted the extent to which firms were passing through higher cost burdens to clients", he said.

Manufacturing accounts for about 10% of Britain's economic output. Anecdotal evidence pointed to transport shortages across North America and shipping delays at ports following typhoons in Asia.

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"Despite this, the Irish manufacturing sector showed signs of resilience with solid growth of employment and purchasing activity", he said. Holdings of inputs increased markedly in October, with the pace of accumulation the quickest since the survey started in March 2011.

PMI surveys measure changes in industry activity by asking respondents to rate conditions for employment, production, new orders, prices, deliveries and inventories.

The Nikkei Taiwan Manufacturing Purchasing Managers' Index (PMI) slipped to 48.7 last month - its first retreat into negative territory in 29 months - as industrial production and new orders cooled. Although the rate of output price inflation accelerated to the fastest since July, it remained well below that seen for input costs.

"Optimism was at its lowest level for six years, as the sector remained stifled by client hesitation, fears about the health of the United Kingdom economy and continued Brexit uncertainty, resulting in slower growth of new orders and purchasing. Others focussed more attention on rising global trade tensions and weaker demand from the world autos sector", IHS Markit says.

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