Japan's factories sustain solid growth in August as orders quicken: PMI

Trevor Jackson
September 2, 2017

Greece's manufacturing activity expanded at the quickest pace in nine years in August, driven by solid rise in new business, survey figures from IHS Markit showed Friday.

The Nikkei India Manufacturing Purchasing Managers' Index (PMI), which is a composite indicator of manufacturing performance, stood at 51.2 in August, up from the index reading of 47.9 reported in July - signalling "a renewed improvement in the health of the sector". Readings above 50 indicate expansion, while anything below 50 indicates contraction. Demand from overseas also lagged, with new export orders slipping to 50.9 from 52.7.

To cope, companies stepped up the pace of hiring, which Gill said a current upswing in employment still had "far from run its course".

The PMI report also showed that the speed at which factory costs rose was the weakest in a year, even as output prices rose at the fastest rate in three months while firms adjusted their pricing of products to account for the new national tax.

Group's Australian Performance of Manufacturing Index (PMI) jumped by 3.8 points to 59.8 last month, marking an eleventh consecutive month of growth.

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Europe's manufacturing PMI is expected to show hardy growth, with economists forecasting a headline reading of 57.4%, the same as in July.

However, stricter environmental policies were a key factor leading to longer delivery times, whilst inflationary pressures intensified as input costs and output charges both rose at faster rates. Business conditions improved across the three main subsectors - consumer, intermediate and investment goods - and at smaller and large-scale producers alike.

The final index for new orders was 51.9, well below the preliminary index of 52.7 and only slightly higher than a final 51.8 in July.

Prime Minister Narendra Modi's shock move last November to scrap high-value banknotes late previous year has continued to weigh on overall economic activity.

Other reports by TheDailyFarc

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