PMI slips as new orders, industrial output slow: Nikkei

PMI slips as new orders, industrial output slow: Nikkei

PMI slips as new orders, industrial output slow: Nikkei

"Consumer, intermediate and investment goods output all increased at stronger rates". Employment also contracted. Moreover, the outlook for production fell to an 11-month low.

In an interview, Fiore said that five of manufacturing's six biggest sectors contributed to the expanding PMI number, but the lone one that did not expand was fabricated metal products, which he said is in the middle of the issues related to steel and aluminum tariffs, adding that new orders were also a drag.

While new export orders - an indicator of future activity - improved to 48.8 from 47.6 in September, they remained in contraction phase for the seventh consecutive month as the trade war with the United States deepened.

But at least for the time being, the government will not fall back on its battle-tested practice of large-scale monetary and fiscal stimulus.

'October saw a worrying turnaround in the performance of the United Kingdom manufacturing sector, ' Director at HIS Markit Rob Dobson said.

The indexes of both the finished goods and input prices expanded at lower rates, and the order backlog index reverted to a contraction. Some companies reported that Brexit uncertainties had negatively impacted inflows of new work from within the EU.

Manufacturing accounts for about 10% of Britain's economic output.

"The trade/import and export sector continued to drop in job openings in the third quarter of 2018, reflecting the continuous influence of the U.S". Output charges rose at the slowest pace in just over two years.

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But it is also possible that Amazon is in advance talks with more than one city as it nears its final decision. Amazon plans to make its announcement by the end of the year.

PMI fell to a 27-month low of 51.1 down from September's reading of 53.6, with companies blaming lower inflows of new work from overseas, particularly from within the European Union due to Brexit uncertainty but also global trade tensions.

"China's economy has not seen obvious improvement", he said.

However, input costs continued to swell due to raw material prices hikes, it said.

"Alongside the halt in hiring, the increasingly defensive position of United Kingdom manufacturers was also reflected in the slight decreases in purchasing activity and inventory holdings, which firms linked to protecting cash flow and cost-cutting".

PMI surveys measure changes in industry activity by asking respondents to rate conditions for employment, production, new orders, prices, deliveries and inventories.

The new orders index dipped below the neutral level of 50, with the weakness apparently concentrated in foreign demand, reflected constricting global trade demands.

Business investment growth remains lacklustre while global trade is assumed to make no contribution to growth over coming years given the OBR expects a reduction in "trade intensity" after Brexit day in March 2019.

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