United Kingdom factory growth cools in December from four-year highs - PMI

02 January, 2018, 11:51 | Author: Barbara Daniel
  • Operating conditions for manufacturing best in 5 years during December: Nikkei PMI

A reading above 50 indicates expansion, while a reading below that signals contraction. That helped the country's to grow close to 7 percent in the first nine months of 2017.

But the PMI also showed manufacturers added staff at the slowest pace in six months, adding to signs that job creation, a highlight of Britain's economy in recent years, is now slowing.

"Strong business performance was underpinned by the fastest expansions in output and new orders since December 2012 and October 2016 respectively", said Aashna Dodhia, an economist at IHS Markit and author of the report.

However, there was a note of caution in the data as growth in new export orders fell to 56.9 in December from a near three-year high of 60.0 a month earlier.

"Manufacturing operating conditions improved in December, reinforcing the notion that economic growth has stabilized in 2017 and has even performed better than expected", said Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group, a subsidiary of Caixin Insight Group.

Analysts also expect that manufacturing growth will also be affected in the coming months by restrictions on factory production in some areas and especially in heavy industries to reduce pollution.

In China, manufacturing growth unexpectedly picked up to a four-month high in December amid a surge in new orders, suggesting continued strength in global trade.

The latest economic growth rate is a tick lower than the 6.9 percent growth in the previous three-month period.

The slowdown will continue into 2018 as the government moves forward with its supply-side structural reforms that include curbs on capacity in many industrial sectors.

The moderate decline in headline PMI was mainly attributable to the lower inventory, while production growth remained solid despite the "unfavorable working day effect", as there were two fewer working days in December 2017 compared with previous year, said a CICC research report. The official PMI dropped to 51.6 from 51.8 in November, as more companies complained about the impact on their operation from tightened supply of energy and other raw materials and rising costs of transportation. The Caixin China General Services Business Activity Index will be published on Thursday.

Recommended:

  • Shah Rukh Khan's new poster from Zero reveals its release date!

    Shah Rukh Khan's new poster from Zero reveals its release date!

    The flick that also stars Anushka Sharma and Katrina Kaif in the lead roles, is slated to release on 21st December 2018. In the first look, Shahrukh is seen in digitally altered size, dancing around and making mischief.
    AT&T says all 50 states have opted into first responder network FirstNet

    AT&T says all 50 states have opted into first responder network FirstNet

    States were given until Thursday to decide if they wanted to opt-out of involvement with the FirstNet program. AT&T said it will rollout an app store and ecosystem for first responder specific apps.
    Snapchat Plans to Implant Its Video Stories Everywhere Online

    Snapchat Plans to Implant Its Video Stories Everywhere Online

    The report states that the company has hired former senior vice president and global head of video at News Corp Rahul Chopra . With the new feature, the company hopes that Stories will see more exposure and ideally help Snapchat , to grow.
  • Wind Chill Warnings/Advisories continue across our area into Tuesday morning

    Wind Chill Warnings/Advisories continue across our area into Tuesday morning

    Wind chills today are expected to be dangerously cold through the rest of the day and again overnight into Tuesday morning. A low pressure system moves by offshore and gives us a chance for snow Wednesday night into Thursday morning.
    Buhari congratulates Weah on winning historic Liberia election

    Buhari congratulates Weah on winning historic Liberia election

    Weah grew up in a Clara Town slum in Monrovia and went on to star for AC Milan, Paris St Germain and Chelsea. She led the country from back-to-back civil wars and saw it through a deadly Ebola outbreak.
    Extreme cold wave? Donald Trump jokes that global warming may help

    Extreme cold wave? Donald Trump jokes that global warming may help

    Therefore it is possible, if not likely that this weeks record cold is related to Global Warming ", a follow-up tweet noted. The negative reaction continued as Donald Trump's attempt at trolling appeared to backfire.
  • Nifty reclaims 10500, Sensex up 40 points in opening trade

    Nifty reclaims 10500, Sensex up 40 points in opening trade

    Infratel (+2.4%), Asian Paints (+2%), TCS (+1.7%), Tata Motors (+1.6%) and Axis Bank (+1.5%) were the top gainers on Nifty50. At the close, the benchmark 30-share index, BSE Sensex declined 98.80 or 0.29% at 33,911.81 with 23 components posting drop.
    Wade Davis Agrees To Terms With Rockies

    Wade Davis Agrees To Terms With Rockies

    Davis won a World Series ring with the Royals in 2015 and helped the Cubs to another World Series appearance previous year . The deal was first reported Friday morning by Jeff Passan of Yahoo Sports and the Rockies have now made it official.
    Woman ruined $300K worth of art on date with lawyer

    Woman ruined $300K worth of art on date with lawyer

    Houston attorney Tony Buzbee and 29-year-old Lindy Layman were on a date Saturday, and returned to Buzbee's home afterward. Buzbee likewise as of late stood out as truly newsworthy for stopping a World War II tank in his River Oaks neighborhood.
  • Jack Del Rio fired by Oakland Raiders after 6-10 season

    Jack Del Rio fired by Oakland Raiders after 6-10 season

    For the past near decade, Gruden has been an ESPN analyst, with constant rumors around where and when he would return to the game. They were the upstarts a year ago and were hot going into the playoffs until Derek Carr busted his ankle.
    Instagram to now show 'recommended posts' in home feed

    Instagram to now show 'recommended posts' in home feed

    Dear @ instagram please put everything back in chronological order and stop doing the recommended posts . What's quite surprising is that Instagram has not made an official announcement about this new feature.

    George Weah Unveils Agenda For Liberia

    As Liberia grappled with the Ebola outbreak in 2014, Weah was elected as a senator, defeating Sirleaf's son Robert for the seat. In his first public comments after his rival conceded, Weah said he was "honored to join a new generation of heads of state".


Popular

Sky Tower fireworks welcome 2018 with a bang
Spectacular fireworks have lit up the skies in Hong Kong, Australia and elsewhere in Asia as revellers rang in 2018. Authorities throughout China were also on high alert for stampedes or terror attacks at large public gatherings.

Crash of Light Plane in Costa Rica Kills 12
Cubillo also reportedly described the pilot, Juan Manuel Retana, as an experienced professional. An investigation into the cause of the crash will begin first thing Monday, Solis said.

Texans GM Rick Smith taking extended leave of absence
We all wish Smith and his wife strength and positive vibes as they deal with her cancer and hope it all ends positively. They would like to have the position filled this week, according to persons familiar with the situation.

Vikings offensive line in flux heading into final week of season
Receiver Adam Thielen can increase his 2018 salary escalator by another $250,000 with five catches to reach 90 for the season. The Vikings surrendered a season-low 3.8 yards per play. "We wanted to finish this season off right", Murray said.

Two men arraigned in Troy quadruple homicide
Tips can be called in to the police department directly at 518-270-4421, or anonymously online at CapitalRegionCrimeStoppers.com . They also would not say how the defendants know each other, but said that both have records and Mann is on parole.

Mike Pence's neighbors put up a clever banner to protest his homophobia
President Donald Trump has also joked that Pence "wants to hang" all gay people, according to The New Yorker . Pence has notoriously supported legislation that critics say discriminates against gay people.

Winter Weather Advisories and Warnings in place for the weekend
Snowfall should decrease as you go north with only 1 to 2-inches expected in counties adjacent to the Illinois-Wisconsin border. This is all upstream moisture will should produce steady snowfall all day Friday , Friday night and into most of Saturday .

Penn State Faithful Unite In Arizona
Penn State played the first half without ends Shaka Toney and Shareef Miller, as both were suspended according to an ESPN report. Penn State scored a pair of touchdowns in the first quarter and completely shut down Washington until late in the opening frame.

Hazard's Father: 'Eden rejected Chelsea renewals to wait for Real Madrid'
We are talking about one of the best goalkeepers in the world. "Because, I repeat, I can tell I have fantastic players with me". That is an aspect he can improve. "When you are a striker, or a number 10, your speciality must be to score.

Trump fires entire HIV/AIDS council by FedEx letter
Other Presidents, including Barack Obama , have cleared out most of their predecessor's appointees to make room for their own. But it's also not unusual for an administration to clear out the previous administration's appointees like this.