Rolling business and financial news, as the latest PMI reports show how factories fared last monthFrench factories still strugglingItaly manufacturing back in contractionChina slowsIreland surgesSpain OKIntroduction: Lots of manufacturing industry surveys coming up 9.07am BST Better news from Greece; factories have reported their first growth since May, with the PMI inching over the 50-point mark.Greek manufacturing output returns to growth in August, headline #PMI at 50.1 (48.7 in July) http://t.co/mg3umTxSXR pic.twitter.com/SPR2oqB8Ky 9.06am BST German factory sector has grown at its slowest rate in 11 months, with its manufacturing PMI dipping to 51.4 from 52.4 in July. Markit economist Oliver Kolodseike warns that:Warning lights are flashing in Germanys goods-producing sector, 9.00am BST The decline in Frances factory sector has accelerated, as Europes second largest economy still struggles. The French manufacturing PMI has slipped to just 46.9, well below the 50-point mark that separates expansion from contraction. Thats the lowest reading in 13 months.The latest disappointing PMI data for Frances manufacturing sector underline its ongoing struggles, with new orders sinking further in a fragile demand environment. Sharply falling output led firms to cut back employment, purchasing and stock levels further in August. This sort of across- the-board weakness has been a common theme in recent months and there remains very little to suggest any turnaround in fortunes will be imminent. And the beat goes on in #France as its manufacturing #PMI falls to 46.9 in August #Euro 8.55am BST Bad news from Italy. Its factory sector has suffered its first drop in activity in over a year.The Italian manufacturing PMI fell to 49.8 in August, down from 51.9 in July. Its the first time since June 2013 that the index has fallen below the 50-point mark.Italian manufacturing sector contracts for first time in over a year. PMI falls to 49.8 in Aug from 51.9 in July, expected 50.8. 8.51am BST As flagged in the intro, Germanys Federal Statistics Office has confirmed that its economy contracted by 0.2% in the second quarter of this year.That matches the first estimate of GDP, released last month. German GDP slump largely construction. Net trade also a drag. Big inventory build-up. Outlook weak. pic.twitter.com/7sfORwLIKf 8.38am BST Back to those PMI reports... and the Dutch manufacturing sector has grown at its slowest rate in over a year.The Netherlands manufacturing PMI dipped to 51.7, from 53.3 in July. That still shows that activity expanded, but rather less vigorously. Output, new orders, and employment growth all slowed. 8.36am BST Shares in Tesco have fallen by over 1.5% this morning as the City gives new chief executive Dave Lewis a cautious reception.Lewis has been rushed into the supermarket to take charge a month early, after last Fridays nasty profits warning. 8.28am BST Spain Manufacturing PMI (Aug) comes in weaker than expected at 52.8, exp 53.3Spanish manuf PMI - input prices still rising, but output prices down to a 5-month low (48.8). 8.25am BST Onto Spain, and its factory sector has just recorded its ninth expansion in a row.Growth has slowed, though, with Markits manufacturing PMI dropping to 52.8 from 53.9 in July. Thats still a fairly decent rate of expansion, given weakness in other parts of the eurozone, although slower than expected.Spains manufacturing expansion slows in August, with the headline #PMI at 52.8 (July: 53.9) http://t.co/mTTVcfzrJW pic.twitter.com/QAknqPrgR8However, mfg orders in Spain rose at quickest pace in +7 years. Charted against Quantity of Purchases Index here: pic.twitter.com/eSQ4toOOtj 8.13am BST Russias manufacturing sector has posted a small rise in activity last month, with its manufacturing PMI unchanged at 51.0.President Putins recent policy of import substitution (encouraging firms to use domestic products rather than overseas goods) appears to be stimulating activity. New orders rose at the fastest pace in a year.The overall impact of import substitution on the Russian economy appears to be negative. Indeed, large scale import substitution typically leads to higher costs and output prices growth, deducting from private consumption more than manufacturers add on the production side. 8.03am BST Taiwan has posted the strongest PMI report this morning, with new factory orders rising at the fastest rate in 42 months.But Indonesias manufacturing sector contracted for the first time in a year:Taiwan tops the Asian manufacturing #PMI table for the third month running in August pic.twitter.com/Ueac7PPm3A 7.53am BST Irelands factories have just expanded at their fastest rate in 15 years, helped by a big jump in new orders from Britain.The latest purchasing managers survey, which is produced by Investec, found a marked improvement in the health of the Irish manufacturing sector, with output and new orders both accelerating.This is a strong outcome, particularly when framed against the backdrop of weakening signs from some Eurozone trading partners of late, although the prognosis for Irelands other key export markets (the US and UK) remains encouraging. With manufacturing firms in Ireland stepping up their purchasing and hiring activity, it is clear that they are optimistic of a strong finish to the year and, while noting that the risks to global growth and (not unrelated) geopolitical tensions have increased in recent months, we expect to see continued progress into 2015. 7.45am BST There are new fears that Chinas factory sector is slowing, after two surveys of the countrys manufacturers came in weaker than expected.HSBCs monthly China Manufacturing survey has found that output and new order growth slowed last month, as firms continued to shed job. Overall, the manufacturing sector still expanded in August, but at a slower pace compared to previous months. We think the economy still faces considerable downside risks to growth in the second half of the year, which warrant further policy easing to ensure a steady growth recovery. 7.39am BST Good morning, and welcome to our rolling coverage of the financial markets, the world, economy, the eurozone and business.Were starting the week with a splurge of economic surveys of manufacturing sectors across the globe.Something of a tumbleweed open seen for share markets as September trading gets underway. Financial bookies: FTSE100 +1, DAX FLAT, CAC40 +2 Continue reading...
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