Published: Wed, April 04, 2018
Money | By Ethel Goodwin

Nikkei India manufacturing PMI falls to 51 in March

Nikkei India manufacturing PMI falls to 51 in March

Viet Nam PMI dropped to 51.6 in March from February's 10-month high of 53.5. Whereas the latest national accounts cover the fourth quarter (October-December), the latest PMI captures the third month of the first quarter of 2018.

In February, the Polish PMI fell for a second consecutive month after reaching an nearly three-year high of 55 in December. Business conditions have been strengthening in each of the past 28 months.

"The sentiment of growth in the manufacturing sector is usually reflected by the industrial production in the country", he told The Edge Financial Daily when contacted.

The institute attributed the PMI reading to faster growth in factory output, as well as higher new orders and new exports. The main issue with the manufacturing stats has been that new orders growth has been around a 9-month low, potentially reflecting a constricting effect from Brexit-based uncertainties. The rise in overall new orders was supported by a faster increase in new business from overseas, the most marked since last October. A headline reading of 50 is neutral. "That said, the rate of contraction was marginal", the statement by IHS Markit read.

The report showed output levels at manufacturing firms continued to expand strongly in March. That said, the rate of job creation eased to a seven-month low. In March, price increases occurred across 17 of 18 industry sectors.

The data for March has shown slowing levels of manufacturing activity across the currency bloc, in some cases by more than forecast. Where an increase was registered, firms linked this to improvements in market demand from both domestic and global markets.

In February, factories had raised prices at their fastest pace in almost seven years.

Meanwhile, input prices increased in March, thus continuing the recent trend. "It looks, therefore, that inflationary pressures may have peaked around the turn of the year", Harker said. Still, charges rose at only a modest pace, to suggest that manufacturers' margins remained under pressure.

A new Commerce Department report on USA construction spending showed it increased just 0.1% in February from January's revised level.

The US Dollar (via the DXY Index) has proven sturdy at the start of the new month and quarter as European markets have come online for the first time since last Thursday. Panellists indicated that slower increases in output and new orders led to caution around stock holdings.

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