teknolojiarsivi.com June 19, 2018

Inflation squeezes United Kingdom manufacturing growth while eurozone factories power ahead

03 October 2017, 08:11 | Vickie Mathis

Molten bottles at the Verallia glass factory in Albi southern France Getty Images

Molten bottles at the Verallia glass factory in Albi southern France

Currency weakness was reportedly the main reason leading to higher input costs (the rupiah being under pressure - like other emerging market currencies - amid renewed United States dollar strength). A gauge for employment rose at the fastest pace since the survey began in 1997.

The British pound weakened against other major currencies in the European session on Monday after data showed that the United Kingdom manufacturing sector continued to expand in September, albeit at a slower pace compared to August. "Surging order-book growth has encouraged manufacturers to take on extra staff at a rate never previously seen in the 20-year history of the PMI survey".

The soaring PMI was attributed to the growing consumption demand, which led to an increase in output, new orders and employment. Quantities of purchases increased amid reports of efforts to replenish stocks in line with forecasts of further improvements in demand. The increase in input costs was the strongest since May 2011.

After declining in August, export orders increased last month even as "the degree of expansion was the mildest since the survey started in January previous year".

On the price front, firms faced sharp cost pressures, but were unable to fully pass these on to consumers due to competitive pressures.

"This is also happening alongside rising commodities prices, which are contributing to inflationary pressures across the supply chain".

Ai chief executive Innes Willox says the recovery in manufacturing activity is continuing, but conditions appear to be moderating.

Optimism is still relatively strong, with more than 51% of firms expecting production to rise over the coming year, reflecting worldwide expansion efforts, efficiency drives and fresh investment plans. Manufacturers need to look at their business processes, costs and overall performance to ensure they can improve efficiency and risk management. "We expect this to continue in the coming months".

"Order book gains continued to underwhelm relative to the historical trend - even as exports returned to growth - which weighed on hiring".

The currency bloc's economy is on track to expand 2.2 percent this year, the strongest pace in a decade as global trade, central bank stimulus and political risks all combine to support growth.

Other News

Trending Now

Former military man named as new leader of British UKIP
Bolton said after his unexpected victory that securing Britain's rapid exit from the European Union is the party's "core task". Mr Etheridge was one of a number of UKIP MEPs who had threatened to quit the party if bookies favourite Ms Waters had won.

Trump lifts shipping restrictions for storm-hit Puerto Rico
But a shortage of truckers and the island's devastated infrastructure are making it tough to move aid to where it's needed most . President Donald Trump waived laws forbidding foreign ships from transporting goods between US ports and Puerto Rico Thursday.

Nepal to sign Treaty on the Prohibition of Nuclear Weapons
More than 40 countries signed the treaty during a high level signing ceremony at the United Nations Headquarters in NY . But delays in getting eight more countries to ratify the treaty mean that it still has not entered into force.

Backed alliance says Russian jets struck its fighters in eastern Syria
Together with Asapov, that brings the overall death toll of Russian troops in Syria to 37. Moscow denied the allegation that it struck the militia's forces at the Conoco gas plant .

United States bombers, fighters, stage show of force off North Korean coast
He also saluted China's central bank for what he said was a move to stop its banks from trading with North Korea . In a show of force Saturday, US Air Force bombers flew in global airspace over waters east of North Korea .

Trump says U.S. opposes independence bid in Spain's Catalonia region
But the US President became more ambiguous hinting the Catalans would not stand for their referendum vote to be blocked.

Kylie Jenner reportedly pregnant with boyfriend Travis Scott's baby
Reps did not confirm the pregnancy, however, and did not immediately respond to The Associated Press's request for comment. Meanwhile, according to TMZ sources, Travis is also spilling the big news to his buddies that he's going to become a dad.

De Bruyne and Sterling strike as City sink Shakhtar
David Silva and Kevin De Bruyne have been firm fixtures but even they are well aware of the need to stay on top of their games. Ahead of the Champions League clash with Shakhtar Donetsk at the Etihad Stadium , here are a quartet of points to consider.

U.S. jets fly over Korean Peninsula after North Korea ballistic missile launch
North Korea's nuclear weapons program will be a major topic of discussion at this week's United Nations General Assembly in NY . The agency did not link the exercise, which follows an earlier joint drill in July, with the North Korea issue.

Warren on Puerto Rico response: I'm more outraged every day
In his own tweets today, President Trump argued his administration is fully engaged with the crisis in Puerto Rico. Yesterday's flight transported a shipment of water and food to Hurricane Maria victims in Puerto Rico.