Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: Global manufacturing slows

While you were sleeping: Global manufacturing slows

Sept 2 (BusinessDesk) - European stocks crept higher, while bonds rose, even as data showed manufacturing slowed in the euro zone, the UK and China, stoking concern about the strength of the global economy.

The latest data also helped cement expectations the European Central Bank will detail plans about a quantitative easing program as soon as this week.

A report showed the final seasonally adjusted Markit euro-zone manufacturing PMI dropped to 50.7 in August, down from 51.8 in July, which was below the earlier flash estimate of 50.8.

“The eurozone manufacturing sector lost further growth momentum in August, with the recovery in production slowing for the fourth straight month to the weakest in the current 14-month sequence of expansion,” Rob Dobson, senior economist at Markit, said in a statement.

“Although some growth is better than no growth at all, the braking effect of rising economic and geopolitical uncertainties on manufacturers is becoming more visible,” Dobson said. “This is also the case on the demand front, with growth of new orders and new export business both slowing in August.”

The UK’s manufacturing PMI also eased in August, falling to a 14-month low of 52.5, according to Markit.

Meanwhile, China’s official manufacturing PMI slid to 51.1 last month, while the HSBC/Markit PMI declined to 50.2, down from an 18-month high of 51.7 in July, below an earlier flash estimate of 50.3.

"Overall, the manufacturing sector still expanded in August, but at a slower pace compared to previous months," Hongbin Qu, chief economist, China & co-head of Asian economic research at HSBC, said in a statement. "We think the economy still faces considerable downside risks to growth in the second half of the year, which warrant further policy easing to ensure a steady growth recovery.”

Europe’s Stoxx 600 finished the session with a 0.3 percent advance from the previous close. The UK’s FTSE 100 added 0.08 percent, while Germany’s DAX gained 0.09 percent. France’s CAC 40 slipped 0.03 percent.

"A concerted slowdown in the China, euro zone and UK manufacturing PMIs … raises alarm bells about global demand conditions," Lena Komileva, chief economist at G+ Economics in London, told Reuters.

"This raises serious questions about the ability of major economies such as the US and the UK, to weather higher interest rates, or in the case of the euro zone to withstand deflationary pressures without further stimulus."

ECB policy makers are set to meet on Thursday after President Mario Draghi last month said further stimulus might be needed to address the slowing pace of inflation.

In a Bloomberg poll, five economists forecast the ECB will cut the refinancing rate by 10 basis points to 0.05 percent at its September 4 meeting in Frankfurt, while the remaining 50 predict no change.

“The ECB will likely maintain a dovish tone at this meeting without any action but we expect some details on its plans to implement an asset purchase program in the coming months," Philip Shaw, economist at Investec, told Reuters.

North American markets were closed for the Labor Day holiday on Monday. Last Friday, the Standard & Poor’s 500 Index closed at a record high 2,003.37.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news