British manufacturing PMI hits seven-year low in August

British manufacturing PMI hits seven-year low in August

British manufacturing PMI hits seven-year low in August

"The global economic slowdown was the main factor weighing on new work received from Europe, the United States of America and Asia".

This was the lowest score since July 2012. Another contraction in the current quarter would officially herald a recession.

Output and total new orders continued to decline.

An index measuring output, which feeds into a composite PMI due on Wednesday and seen as a good gauge of economic health, rose to 47.9 from 46.9 but also spent its seventh month below the breakeven mark.

The economy has managed to weather the uncertainty created by the June 2016 vote by Britain, its near neighbour and close trading partner, to leave the European Union, although data last week showed some moderation in the rapid pace of jobs growth.

Dobson added that the faltering world economy was a central reason for shrinking activity, while companies were also shifting business because of Brexit.

"The broader picture for Asian exports remains very weak because of the impact of the U.S".

China's Caixin Media and IHS Markit PMI rose to 50.4 from 49.9 in July, indicating renewed expansion and its highest level since March.

Hurricane Dorian wreaks havoc on Bahamas as 'catastrophic' Category 5 storm
He got in trouble while trying to escape the bad weather with his family near their home in Abaco, according to Bahamas press. Coastal flood advisory through the weekend for potential minor flooding during high tides.

In another bright spot, the final reading for backlogs of work rose to its highest since December past year, though it still showed a decline and some firms said operating capacity eased as a result of slower inflows of new business. Anything above 50.0 separates economic growth from contraction.

Elsewhere, Japanese manufacturing activity fell for a fourth straight month, underlining a darkening outlook for the world's third-largest economy.

Companies that reported higher output generally linked this to firmer client demand, although the anemic growth rate was weaker than the historical average, according to the survey.

"However, output could be boosted in the next couple of months if firms start to stock pile ahead of the latest Brexit cliff-edge date of end October". In the last two cases, the rate of expansion was particularly weak when we look at the survey history.

As the report authors make clear, the global economic slowdown is the primary cause of the decline, albeit there was some impact from supply chain reshoring as businesses seek to mitigate the impact of a no-deal Brexit.

"Japan may slide into recession around the time the sales tax hike takes effect", he added.

As a result, manufacturers sped up job cuts, which reached the fastest rate since July 2012.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.