Bumper Novem­ber for global man­u­fac­tur­ers

The Sun (Malaysia) - - SUNBIZ -

LON­DON/HONG KONG: Man­u­fac­tur­ers around the globe per­formed strongly in Novem­ber, but con­cerns about the pro­tec­tion­ist lean­ings of US Pres­i­dent-elect Don­ald Trump and an Opec-in­duced oil price rally could cur­tail fu­ture growth.

Fac­to­ries across Asia and Europe ramped up ac­tiv­ity and data due later yes­ter­day from the United States are ex­pected to show man­u­fac­tur­ers in the world’s largest econ­omy also pushed harder on the ac­cel­er­a­tor.

But some an­a­lysts cau­tioned Novem­ber might be as good as it gets as the ef­fects of vast mon­e­tary stim­u­lus from cen­tral banks wear off.

IHS Markit’s fi­nal man­u­fac­tur­ing Pur­chas­ing Man­agers’ In­dex for the eu­ro­zone chalked up its high­est read­ing since Jan­uary 2014 in Novem­ber, reg­is­ter­ing 53.7, in line with an ear­lier flash es­ti­mate and ahead of Oc­to­ber’s 53.5. Any­thing above 50 in­di­cates growth.

But Bri­tish man­u­fac­tur­ing growth cooled un­ex­pect­edly as fac­to­ries grap­pled with soar­ing costs caused by the slump in ster­ling after Bri­tain voted to leave the Euro­pean Union.

The Markit/CIPS UK PMI fell to 53.4 from 54.2, con­found­ing ex­pec­ta­tions for a rise to 54.5 in a Reuters poll of economists.

In Asia, there were stronger PMIs in China, Tai­wan and Viet­nam, and while ac­tiv­ity in Ja­pan’s fac­to­ries was still grow­ing in Novem­ber, the pace was slower.

China’s of­fi­cial PMI rose to 51.7 in Novem­ber from 51.2. The in­dex was stronger than economists polled by Reuters had ex­pected and matched a level last seen in July 2014.

Else­where in Asia, the pace of growth in In­dia’s fac­tory ac­tiv­ity slowed, re­sult­ing in the big­gest month-on-month de­cline in its PMI since March 2013.

South Korean fac­to­ries showed a fourth con­sec­u­tive month of slow­down un­der­ly­ing a frag­ile re­cov­ery for Asia’s fourth-big­gest econ­omy. – Reuters

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