Nikkei PMI declines to 49.9 in Dec as Malaysian manufacturing sector stagnates

Laura Christensen
January 2, 2018

China's manufacturing purchasing managers' index (PMI) came in at 51.6 in December, slightly decelerating from 51.8 in November, according to the National Bureau of Statistics (NBS) data released Sunday. A number greater than 50 indicates an expansion in activity, while a reading less than 50 means a contraction. "Although new order growth eased, firms continued to ramp up production and took on extra staff at a near-record pace, reflecting the success they have had in securing new work over recent months", associate director at IHS Andrew Harker said.

"Given the strong conditions evident in the manufacturing sector, it is no surprise to see that firms are upbeat about the outlook, with more than six times as many companies expecting to see growth in 2018 as opposed to those who anticipate a decline", said Investec Ireland chief economist Philip O'Sullivan.

The manufacturing sector employed less people as the sub-index of employment dropped 0.3 percentage points month on month to 48.5 in December. That said, the level of business confidence remained below the trend observed for the survey history. "Industry in Việt Nam therefore looks to be in good shape heading into 2018", Andrew added.

Tunisia bans Emirates from landing in Tunis
More than 8000 Tunisians are suspected to have fought with ISIL, hundreds of women among them. "When we arrived here, we found the situation really chaotic".

Chinese steelmakers in 28 cities have been ordered to curb output between mid-November and mid-March, while a campaign to promote cleaner energy by converting coal to natural gas has also hampered manufacturing activity in some cities, leading to shortages and sending prices spiking. Nonetheless, business conditions strengthened in each of the past 49 months.

"Growth remains remarkably robust, underpinned by resurgent global demand, stimulus-boosted infrastructure spending, and a deleveraging program that remains more honored in the breach than the observance". Notably, new export orders increased at the fastest pace since February 2011.

The upward movement in the headline index was driven by a sharp increase in output.

Other reports by My Hot News

Discuss This Article