Manufacturing Activity Expands at Fastest Pace in Almost Three Years

Andrew Cummings
December 3, 2019

"These combined to stifle any chance of manufacturing crawling out of the contraction zone, where the sector was stuck for a seventh month in a row", says Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply, who sponsor the report.

The headline IHS Markit/CIPS Purchasing Managers' Index fell to 48.9 in November from 49.6 in October. It has remained below the 50 line separating growth from contraction since June.

Spain's manufacturing sector contracted for a sixth month in November as weak overseas demand and domestic political uncertainty continued to drag, although rebounds were seen in all segments, a survey showed on Monday. New orders, employment, raw materials purchases and backlogs of work all declined at a shallower rate, while optimism staged its biggest one-month bounce in over six years.

Companies reported scaling back production in response to lower new order intakes.

Sterling remained unmoved against the US Dollar, however, as United Kingdom political developments continue to dominate the spotlight ahead of the December 12 general election. ith the Conservative Party being generally preferred by financial markets, due to their promise to resolve Brexit uncertainty next month, concerns of a hung parliament are beginning to haunt British markets.

Today also saw the release of the US Markit manufacturing PMI for November, which beat expectations and rose from 52.2 to 52.6.

"If trade negotiations between China and the US can progress in the next phase and business confidence can be repaired effectively, manufacturing production and investment is likely to see a solid improvement", Zhong said.

That is largely because the global economy continues to decelerate and as real progress in the disruptive US-China trade war remains elusive.

Other reports by iNewsToday