Spanish manufacturing sector's decline slows in January: PMI

Andrew Cummings
February 3, 2020

The German bunds remained almost flat during European trading session Monday after the country's manufacturing PMI for the month of January cheered market investors, rising above expectations ahead of the European Central Bank (ECB) President Christine Lagarde's speech, scheduled to be delivered today by 18:00GMT.

Italian manufacturing activity declined for a 16th month running in January but at the slowest rate for eight months, a survey showed on Monday, offering a glimmer of hope that a long manufacturing slump may be bottoming out.

The purchasing managers ' index (PMI) of manufacturing industries of Russian Federation in January rose to 47.9 points from 47.5 points in December, said Markit, which calculates PMIS for different countries. Analysts had expected a reading of 51.3.

Last month the central bank left policy unchanged but launched a broad review of its policy that is likely to see new President Christine Lagarde redefine the ECB's main goal of price stability and how to achieve it.

The findings, which focus mostly on small and export-oriented businesses, were slightly more optimistic than those in an official survey released on Friday, which showed growth had stalled.

Limited improvement in domestic and foreign demand meant some manufacturers did not replenish stocks, said Zhong. The rise in total sales was supported by strengthening demand from external markets, as noted by the fastest increase in new export orders since November 2018.

Factories also shed jobs in January for the first time since October. Fears of an epidemic only began to surface late in the month.

"The increases are all higher than a day earlier". In contrast, business confidence increased at the start of 2020, when the producers showed a higher level of positive sentiment concerning the prospects for production in the next 12 months. "The only good news is the growth rate of the discharged patients is the highest", HuXijin, the Chief in Editor at the Global Times reported. However, both Chinese demand and the global economy had generally been in better shape.

"However, optimism remained low compared to the historical standards of the survey, in part due to ongoing uncertainty at some firms about the impact of Brexit on their businesses", said the report.

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