Kristallnacht : Global Manufacturing PMI

Break the glass to the fire hose because globally, manufacturing PMI prints are on fire. For instance, Euro-Zone Manufacturing PMI ended 2017 at a record high, with all-time highs seen in Germany, Austria & Ireland. And many more.

The AIG Performance of Manufacturing Index in Australia fell to 56.2 in December of 2017 from 57.3 in November. A slowdown was recorded for new orders (-3.5 to 56.9), employment (-2 to 52.9), exports (-6.2 to 51.4), sales (-3.6 to 52.6) and average wages (-3.9 to 60.2). In contrast, production (+1.1 to 57.7), inventories (+1.1 to 55.5) and supplier deliveries (+0.1 to 57.4) rose faster, capacity utilization increased (+4.8 to 79.7 percent), input price inflation eased (-5.6 to 70.8) and selling one went up (+0.8 to 53.4). Six of the eight sub-sectors in the Australian PMI expanded in December. The food and beverages sub-sector strengthened further while the wood & paper sub-sector moved into contraction and the textiles, clothing, furniture and other sub-sector stayed in contraction. Manufacturing PMI in Australia averaged 50.25 from 2001 until 2017, reaching an all time high of 62.13 in May of 2002 and a record low of 30.86 in February of 2009.

The Nikkei Manufacturing PMI in Indonesia fell to 49.3 in December of 2017 from 50.4 in the preceding month. It was the first contraction in manufacturing sector since July, as output declined for the first time in three months, new orders shrank for the first time in five months and new export orders dropped modestly. Also, firms cut their staffing levels and reduced their inventory holdings. Meantime, buying activity went up marginally and business sentiment hit its highest since June. On the price front, input price inflation accelerated to the sharpest since mid-2017, which led to a further increase in output charges. Manufacturing PMI in Indonesia is reported by Markit Economics.

The Caixin Manufacturing PMI in China rose to 51.5 in December of 2017 from 50.8 in the prior month and above market consensus of 50.6. It was the highest reading since August, due to faster rises in output, new orders and new export orders. In addition, buying activity increased for the seventh straight month and confidence picked up slightly. Meantime, capacity pressures continued to build, with backlogs rising amid a further decline in workforce numbers. Inflationary pressures remained elevated, with input costs rising sharply and prices charged increasing solidly.”Manufacturing conditions improved, reinforcing the notion that economic growth has stabilized in 2017 and has even performed better than expected, said Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group, a subsidiary of Caixin. However, we should not underestimate downward pressure on growth next year due to tightening monetary policy and strengthening oversight on local government financing, he added. Manufacturing PMI in China is reported by Markit Economics.

Manufacturing PMI in Germany increased to 63.30 in December from 62.50 in November of 2017. Manufacturing PMI in Germany is reported by Markit Economics.

The Norwegian NIMA Manufacturing PMI went up to 57.8 in December 2017 from an upwardly revised 57.4 in the previous month, easily beating market expectations of 56.3. The reading pointed to the strongest pace of expansion in the manufacturing sector since October 2007, mainly boosted by rising new orders (PMI at 59.9 from 58.8 in November) and production (PMI at 58.5 from 57.5). Meanwhile, employment growth eased from the previous month, but remain strong (PMI at 55.6 from 55.9). Manufacturing PMI in Norway averaged 52.67 from 2004 until 2017, reaching an all time high of 64.40 in November of 2006 and a record low of 35 in February of 2009.

Manufacturing PMI in France increased to 58.80 in December from 57.70 in November of 2017. Manufacturing PMI in France is reported by Markit Economics.

The IHS Markit Poland Manufacturing PMI rose to 55.0 in December 2017 from 54.2 in the previous month, slightly above market consensus of 54.7. The reading pointed to the strongest pace of expansion in the manufacturing sector since February 2015, as output, employment and new orders grew at faster rates, with the latter posting the sharpest increase in 34 months. On the price front, input price inflation eased to a three-month low, while prices charged by manufacturers rose at a faster pace. Looking ahead to 2018, the degree of optimism was the strongest in eight months, amid a positive economic situation, more efficient machinery and new products. The PMI averaged 53.6 in 2017, the best annual average since 2006. Manufacturing PMI in Poland is reported by Markit Economics.

The IHS Markit Spain Manufacturing PMI fell to 55.8 in December 2017 from a near 11-year high of 56.1 in November and below market expectations of 56.4. Still, the reading pointed to a marked monthly improvement in the health of the manufacturing sector. Production rose sharply on the back of a solid increase in new orders and firms continued to raise employment and purchasing activity at elevated rates. On the price front, both input and output prices rose at a softer pace. Looking ahead to 2018, the degree of optimism was the strongest in three months, amid predictions of rising sales. The PMI averaged 54.8 in 2017, the best annual average since 2006. Manufacturing PMI in Spain is reported by Markit Economics.

The NEVI Netherlands Manufacturing PMI came in at 62.2 in December of 2017 from November’s all-time high of 62.4. The reading pointed to another expansion in manufacturing activity, as output, new orders and new export orders were at or close to record levels. Also, employment hit a new peak for the third consecutive month. Despite this, backlogs of work increased the most since February 2007. On the price front, both input inflation and selling prices eased slightly, but remained strong overall. Finally, the business confidence maintained high, with overall sentiment close to October’s record level. Manufacturing Pmi in Netherlands is reported by Markit Economics.

The seasonally adjusted Investec Manufacturing PMI in Ireland increased sharply to 59.1 in December of 2017 from 58.1 in the previous month. It was the highest reading since the survey began in May 1998, as employment growth surged to a record high, new orders increased the most since June 1998 and purchasing activity went up at the fastest pace since February 2011. In addition, output expanded for the 17th straight month; new export orders continued to grow, particularly from North American customers and firms were upbeat about the outlook. Meantime, backlogs of work rose solidly again. The rate of input cost inflation quickened to a nine-month high, while output prices increased at a faster pace. Manufacturing PMI in Ireland is reported by Markit Economics.

Sweden’s seasonally adjusted Manufacturing PMI fell slightly to 60.4 in December of 2017 from 63.3 in November. New orders, exports orders, output and employment increased at a slower pace. Meanwhile, suppliers’ delivery times shortened. On the price front, input price inflation rose to the highest since March. Manufacturing PMI in Sweden averaged 54.68 from 1994 until 2017, reaching an all time high of 71.40 in November of 1994 and a record low of 32.70 in December of 2008.

The Istanbul Chamber of Industry Turkey PMI Manufacturing index went up to 54.9 in December of 2017 from 52.9 in November. It marked the tenth straight month of increase in factory activity, and the highest since August, as export orders grew the most in since February 2011, employment increased fastest since March 2011, and new orders continued to rise more sharply than November. Meantime, purchasing activity rose at a solid rate. On the other hand, input prices rose sharply amid unfavorable exchange rate. In response to higher cost burdens, manufacturers raised their output prices. Manufacturing PMI in Turkey is reported by Markit Economics.

The Nikkei Manufacturing PMI in India jumped to 54.7 in December of 2017 from 52.6 in the prior month and beating market consensus of 51.0. The reading pointed to the strongest expansion in manufacturing sector since December 2012, as output growth hits a five-year high, employment rose at the fastest pace since August 2012 and new orders increased at the strongest rate since October 2016. In addition, input buying grew the most since August 2015, new export orders went up at the quickest pace since June and confidence strengthened to the highest in three months. On the price front, input cost inflation accelerated to the strongest since April. Subsequently, firms raised their average selling prices at the fastest pace since February. Manufacturing PMI in India is reported by Markit Economics.

Manufacturing PMI In the Euro Area increased to 60.60 in December from 60.10 in November of 2017. Manufacturing PMI in the Euro Area is reported by Markit Economics.

Manufacturing PMI in Greece increased to 53.10 in December from 52.20 in November of 2017. Manufacturing PMI in Greece is reported by Markit Economics.

The IHS Markit/CIPS UK Manufacturing PMI fell to 56.3 in December 2017 from November’s 51-month high of 58.2 and way below market expectations of 58. Although growth of output, new orders and employment eased during December, rates of expansion remained strong. Also, new export sales continued to increase solidly, as demand improved from clients in Europe, the US, China and the Middle East. On the price front, input cost inflation slowed to a four-month low while selling prices rose for the twentieth successive month. Manufacturing PMI in the United Kingdom is reported by Markit Economics.

Source: Trading Economics & Markit Economics

-R.W.N II

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