Rolling coverage of today's manufacturing surveys from across the globe
Latest: Euro PMI falls to six-month low.
Spanish PMI hits highest since April 2010
The agenda - factory data from Europe and the UK this morning
Japan's Nikkei jumps 2% after Chinese PMI beats forecasts
Russian factory activity falls again; Turkey stagnates
10.40am BST
My colleague Katie Allen has analysed today's UK factory data (see last post), which showed Britain's manufacturing sectors recovery continued.
The headline reading on activity came in at 57.0 in the Markit/CIPS UK Manufacturing PMI. That was as forecast by City economists and down only slightly from 57.3 the month before.
Sustaining the rebound and continuing to push towards rebalancing the UK economy towards manufacturing therefore remains critical, he said.
This all offers hope that that the UK will grow even faster in the second quarter of 2014 versus the 0.8% rate recorded in the first quarter, he said.
9.38am BST
May was another decent month for UK manufacturers -- with growth growing pretty strongly thanks to a strong rise in new orders from at home and abroad.
The Markit/CIPS PMI index same in at 57.0, down slightly on April's 57.3, but still showing strong expansion.
UK Manufacturing PMI (May) = 57.0 vs 57.0 expected and 57.3 previous
UK manufacturing upsurge continues, with the Markit/CIPS headline #PMI posting 57.0, down only marginally from 57.3 in April
British manufacturers march onwards to mirror last months strong performance. Growth of new business and export orders remained strong in May, and firms are ramping up production to meet this demand.
As a result, and in line with robust economic conditions, it can be said, that were starting to see real evidence of a sustained recovery for the sector.
9.29am BST
Greece's factories reported that conditions improved a little in May, showing growth for the second month in a row.
Its PMI came in at 51.0 for May, little-changed from Aprils reading of 51.1.
9.25am BST
Howard Archer of IHS Global Insight says it is 'disappointing' that eurozone factory output growth hit a six-month low in May, adding:
Following muted GDP growth of 0.2% quarter-on-quarter in the first quarter, it highlights that the Eurozone is still finding it a struggle to really develop growth momentum
9.23am BST
This chart compares eurozone manufacturing activity (the blue line) to the region's GDP (green) - indicating factories are still contributing to economic growth.
9.14am BST
It's official: The recovery in the eurozone's factory sector slowed last month, dragged back by the weakness of France's economy (see here) and slower growth in Germany (see here).
The overall eurozone PMI, measuring activity at thousands of firms across the single currency, fell to 52.2 from 53.4 in April.
Euro zone #PMI falls from 53.4 in April to 6-month low of 52.2, signalling weaker but still solid improvement in the sector
France in particular is one boat which is not being lifted by the rising tide. France has slid back into contraction, suggesting much more needs to be done to address the competitiveness of the countrys goods producers.
In Germany, the pace of expansion eased, possibly linked to some concerns over the situation in Ukraine, or perhaps simply due to the timing of Easter. Without any clear cause, the slowdown in the regions largest economy will perhaps be the biggest concern for the eurozones growth trajectory if a rebound is not forthcoming in June.
Third the survey also highlights some encouragingly strong national performances, especially among previously-troubled member states such as Spain and Italy, where productivity improvements and competitive pricing have helped boost sales. These gains suggest that long-term structural reforms are helping to lift demand.
9.00am BST
Now onto Germany, and its factory sector expanded for the eleventh straight month, but at the weakest rate in seven months.
The German manufacturing PMI came in at 52.3, down from April's 54.1.
German May Manu PMi 52.3 (52.9 exp). 11th straight month of expansion. Lowest since Oct 2013
"The latest survey results are a reminder that sustainable strong manufacturing growth cannot be taken for granted and that there may still be some more obstacles on the path to recovery."
8.56am BST
There's gloom for France, though, with confirmation that its manufacturing sector suffered a fall in activity last month.
New orders, employment and purchasing activity all fell.
FRANCE MAY FINAL MANUFACTURING PMI: 49.6 V 49.3E pic.twitter.com/jdUq5XCMfr
"The disappointing data paint a picture of a sector struggling to generate any sort of traction in recovery, with the surveys main indices averaging close to stagnation levels over the last six months,"
#France manufacturing #PMI "The disappointing data paint a picture of a sector struggling to generate any sort of traction in recovery"
8.49am BST
Italy's factory sector grew again in May -- with a PMI of 53.2.
Meanwhile, there were signs that inflationary pressures might be returning as purchasing costs and factory gate prices both rose for the first time in three months. A solid deterioration in vendors lead times added to the evidence of supply-side conditions tightening somewhat.
8.43am BST
Switzerland's manufacturing PMI has fallen to its lowest level in almost a year, but factory output is still growing.
The Swiss factory PMI slipped to 52.5 for May, down from 55.8 points in April.
Miss for Switzerland - May Manu PMi 52.5 (55.5 exp)
8.39am BST
The Czech Republic's factory sector has posted its best monthly growth since January 2011.
The Czech manufacturing PMI rose for the second month running in May to a three year high of 57.3, up from 56.5, showing strong growth.
Czech May Manu PMi @ 57.3 (55.9exp). 3 year high
8.31am BST
Spain's stock markets is outperforming the rest of Europe, as most markets gain a little ground in early reading.
The Spanish IBEX has jumped 0.5% to 10,838 points.
8.21am BST
ZING. Spain's manufacturing PMI has hit its highest level in four years as the Spanish economy continues to claw its way back from recession.
Spain's factory PMI jumped to 52.9 in May, from 52.7 in April -- the highest reading since April 2010.
The recent growth in the Spanish manufacturing sector shows little sign of falling away at present, with further solid expansions in output and new orders recorded in May.
One of the positives from the latest survey was that firms upped their rate of purchasing to the fastest in more than four years, suggesting less of a reluctance to hold inventories amid positive expectations for the future.
8.16am BST
Turkish factories stagnated in May. The country's manufacturing PMI slid to 50.1 from 51.1 in April, close to the no-change mark.
After nine months of improvement, Turkish manufacturing conditions were close to being stagnant in May.
8.12am BST
Ouch - Norway's factory PMI fell to 49.8 in May, down from April's 51.1, shows a small contraction.
Norway manufacturing contracts unexpectedly
8.11am BST
India's factory PMI rose marginally to 51.4 in May, from April's 51.3, as output increased and firms took on more staff.
And it would have been better if companies hadn't been hit by power cuts.
"The momentum in the manufacturing sector improved at the margin, thanks to higher domestic and export order flows. However, output growth held steady as frequent power cuts forced firms to accumulate backlogs at a faster pace."
8.04am BST
Russia's factories have endured another tough month, with the country's manufacturing sector shrinking for the seventh month in a row.
But it is the smallest contraction since November, with the Russian PMI rising to 48.9, from 48.5. That's closer to the 50-point mark splitting expansion from contraction.
Importantly, Russian manufacturers do not report any strong negative impacts from the spike in geopolitical tensions on their business activity that potentially could have been significant. We think manufacturing will most likely be balancing between a small contraction and stagnation in the coming months. The recovery in new orders is encouraging in this respect.
The recently improved PMI data on China point to a likely increase in demand for Russias exports going forward.
7.56am BST
Today's European PMI surveys are likely to show France lagging behind the rest of the eurozone (the 'flash' published two weeks ago showed French companies struggling)
Jasper Lawler of CMC Markets sums up what's expected:
Spains May PMI manufacturing report is estimated to show a reading of 53 up from the prior 52.7. Italy should see its PMI manufacturing at an estimated 53.6, down from the prior 54. French and German May PMIs are expected to be unchanged from the preliminary reading at 49.3 and 52.9 respectively.
7.51am BST
Indonesia PMI at record high in May. Domestic demand still chugging along.
7.51am BST
Activity in Indonesia's manufacturing sector has hit a record high, as factories across the region experienced an unprecedented surge in new orders.
Indonesia's factory PMI jumped to 52.4 in May, up from 51.1 in April - the highest reading in the survey's history.
Although new export orders expanded, growth of overall new orders was also at a record high, suggesting that domestic orders were an even larger factor behind the strong PMI reading.
7.36am BST
Global stock markets have rallied today, following the news that China's factory activity hit a five-month high in May thanks to an increase in new business.
Beijing's official PMI survey beat forecasts, jumping to 50.8 in May compared with 50.4 in April.
"The continued improvement in the PMI shows the signs of economic recovery are becoming more obvious."
Asia late... Nikkei ends 2.1% up Sensex up 1.2% ASX up 0.5% in rolling close Kospi up 0.4% $NIK $XJO $SENSEX
7.35am BST
Good morning, and welcome to our rolling coverage of the financial markets, the world economy, business and the eurozone.
It's Global Manufacturing PMI Day - which means we're about to get a rush of data from factory sectors across Europe and beyond, giving a new healthcheck on the global economy.
Continue reading... |
| READ THE ORIGINAL POST AT www.theguardian.com |