Growth slows but outlook remains positive for United Kingdom manufacturers

China PMI China manufacturing China factory

A composite PMI covering both the manufacturing and services activity stood at 52.9 in February, down from January's reading of 54.6, but stayed well above the 50-mark that separates expansion from contraction. Trade risksBoosted by government infrastructure spending, a resilient property market and unexpected strength in exports, China's manufacturing and industrial firms were a major driver behind the solid economic growth past year.

IHS Markit said the figures suggested output growth so far this year had slowed dramatically to a three-monthly rate of 0.4%, compared with a more robust 1.3% in the last three months of 2017. "In spite of the rise in purchasing activity, preproduction inventories remained broadly unchanged, as increases in output offset the expansion in buying", it said.

The sector, however, showed a hike in output as it rose for seventh straight month in February albeit at a small rate, due to improved economic conditions. Similarly, new export orders rose for the fourth consecutive month, despite softening from January's 16-month high. Indeed, the continued rise in export orders and an uplift in new orders from the domestic market provided evidence that the foundations for continued growth were still buoyant.

Improving business conditions in Southeast Asia's largest economy made manufacturing companies decide to add staff-members, hence payrolls rose for the first time in almost a year-and-a-half.

"We've probably seen a peak in growth rates", said Florian Hense, European economist at Berenberg in London.

Private Advisory Group LLC Acquires 4020 Shares of Chevron Co. (CVX)
Bank of America set a $125.00 price objective on Chevron and gave the stock a "buy" rating in a report on Saturday, December 2nd. Massachusetts-based Portolan Capital Mgmt Lc has invested 0.07% in Carrols Restaurant Group, Inc. (NYSE:ORN) for 301,435 shares.

"That said, the level of business confidence slightly fell from January and was weaker than the average recorded over five-and-a-half years of data collection". Meanwhile, the rate of input cost inflation remained elevated and firms raised their selling prices again, albeit at a slightly reduced pace.

A slowdown in the stellar expansion across the eurozone past year had also played a part in British firms experiencing lower growth, he said.

However, a key concern remains the ability of manufacturing companies to pass on higher input costs, as output charge inflation was only modest.

In short, the picture is one of slowing manufacturing expansion, accompanied by rising momentum in price inflation.

Related:

Comments

Latest news

Kroger to stop selling firearms to people under age 21
The company also said Fred Meyer gun departments are being phased out because of slowing customer demand for the products. The Ohio-based company only sells firearms at its Fred Meyer locations in Alaska, Idaho, Oregon and Washington.

Barcelona frustrated by plucky Las Palmas after stunning Messi opener
Jonathan Calleri scored from the spot to earn his side a vital 1-1 draw in their fight against relegation. "We don't know what the referee gave the penalty for", Valverde said in his postgame news conference.

The 90th Year of the Oscars Will Be the Most Social Yet
The artists who sang this year's five nominees for best original song onscreen will reprise their performances at the awards. Cullinan and Martha Ruiz were present when Faye Dunaway and Warren Beatty presented the nominees for best picture .

Ardern says refugee offer 'remains' as PM defends Kiwi deportations
The issue of forcible deportations of New Zealand citizens was discussed by Turnbull and Ardern when they met in Sydney on Friday. Ardern said she accepted the Australia Government was well within its rights to exercise it deportation policy.

RSP Permian (RSPP) Posts Earnings Results, Beats Expectations By $0.04 EPS
That puts total institutional holdings at 144,112,980 shares, according to SEC filings. (NYSE: RSPP ) was sold by Mutrie James E . As per Monday, July 10, the company rating was upgraded by Bank of America. ( RSPP ) in trading session dated January 22, 2018.

Vancouver-based MEC severs ties with gun manufacturer after outcry
Labistour's letter said MEC will continue to engage with Vista's brands "in ways that are consistent with our mission and values". MEC said it will stop selling any new products from Vista, which also owns Savage Arms that makes assault rifles.

Itau Unibanco Holding SA (ITUB)- Remarkable stock of Recent Trading
OppenheimerFunds Inc. purchased a new position in Itau Unibanco during the fourth quarter valued at approximately $71,415,000. It dropped, as 21 investors sold ULTI shares while 104 reduced holdings. 106 funds opened positions while 598 raised stakes.

When Chris Jericho Could Return To WWE, DDP Comments On Ronda Rousey
And while Rousey's opponents had been rumoured for some time, her partner for the match has only just been decided. Rousey has said that joining WWE was a childhood dream and that this is not a publicity stunt.

Jimmy Kimmel Talks About Hosting The Oscars
Bust out the proverbial popcorn because it's that time of year again. "We all knew and still no arrests", a second one says. Mr. del Toro is up for Best Achievement in Directing, Motion Picture of the Year and Best Original Screenplay .

Equifax discovers another 2.4 mln customers hit by data breach
It said Social Security numbers, birth dates, addresses and, in some cases, driver's license numbers were stolen. In total, roughly 147.9 million Americans have been impacted by Equifax's data breach.

Morneau takes 'historic and meaningful step' to close gender gap
The Harper government faced heavy criticism in 2010 for not boosting aid spending when Canada last hosted what was then the G8. The advantage of working with provincial plans is that Ottawa could act more quickly than if it replaced them.

Intel's Latest Spectre Update Resolves Reboots On Haswell And Broadwell Systems
As of February 13, Windows 10 releases on 32-bit (x86) platforms now have updates to address both vulnerabilities. Microsoft also noted that you'll need to make sure that your anti-virus (AV) software is compatible.

Returning Parkland students told to not bring backpacks
Meanwhile, students are scheduled to return to school Wednesday, for the first time since the February 14 shooting. Cruz signed an affidavit in a barely legible printed scrawl that resembled the writing of a young child.

Kevin Pietersen says 'No' to playing PSL 2018 matches in Pakistan
On the other hand, a number of overseas players from all franchises have agreed to participate in the Pakistan leg of PSL 2018. Karachi Kings star Afridi grabbed all the headlines against Quetta Gladiators as he pulled off a sensational catch.

Cross border shelling: Two army men injured in Mankote sector
Anwar said that Indian troops were targeting educational institutions where elementary board exams were being held since Tuesday.

Other news