Results above 50 points indicate expansion with higher results indicating a stronger expansion.
“On the bright side, employment rose for the third successive month”, the economist added. Conversely, stocks of finished goods rose during the month.
Here is an overlay with the equivalent PMI survey conducted by the Institute for Supply Management (see our full article on this series here, note that). The factory PMI came in at 56.1 versus 55.8 in August. A longer colder winter reportedly contributed to increased demand for heating equipment.
Separate PMI data from manufacturing on Monday pointed to slowing growth in that sector. All of the nations covered by the survey recorded steeper increases in input costs. The latter decreased at the most pronounced rate observed since the inception of the series.
The Nikkei Japan manufacturing PMI went up to 52.9 in September – the highest in four months – from 52.2 in August.
In response to lower output requirements, local manufacturing companies reduced their staffing levels (payroll numbers), albeit fractionally, at the end of Q3-2017. Cantor Fitzgerald reiterated a “hold” rating and issued a $45.00 price objective on shares of IHS Markit in a research report on Tuesday, September 26th. Reflecting higher cost burdens, firms raised their charges again in September.
Inflation in the bloc undershot expectations in September, official Eurostat data showed on Friday, highlighting price growth remained week and supporting the ECB’s case for only gradual removal of stimulus.
The majority of the surveyed companies still expect output to rise in the next 12 months on the back of new product launches, an improving economic climate, marketing activity and business expansions. It’s the same with output prices as higher costs are being passed onto the final consumer.
“There is a clear downturn in commercial construction, which is likely to continue”. Yet, at a time when we are seeing the fastest pace of innovation in technology there has ever been, it’s frustrating to see manufacturing still stuck in a period of low growth.
Howard Archer, the chief economic adviser to the EY Item Club, said: “Muted economy activity and appreciable economic and political uncertainties threaten to be a highly challenging combination for the construction sector over the coming months”. “Survey respondents commented on renewed efforts to boost capacity in response to rising demand, although some noted that skill shortages had made it more hard to fill vacancies”, IHS Markit said.