India's factory activity growth slowed in February from the previous month's eight-year high due to a modest weakening in demand and output, although overall conditions remained firm, a private survey showed on Monday.

The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, fell to 54.5 last month from January's 55.3, above a Reuters poll forecast of 52.8.

It has stayed above the 50-point threshold mark, which separates growth from contraction, for over two years.

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"Factories in India continued to benefit from strong order flows in February, from both the domestic and international markets," Pollyanna De Lima, principal economist at IHS Markit, wrote in a release.

"The pick-up in demand meant that companies were able to further lift production and input buying at historically-elevated rates."

While the latest survey showed the new orders sub-index, a proxy for domestic demand, slipped to 57.5 in February, it remained above the long-term average since the index was introduced in March 2005.

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That encouraged firms to maintain solid output.

However, foreign demand and optimism were weaker in February than in January on rising concerns the spread of coronavirus outside China would affect major Asian economies significantly.

That subdued mood pushed the hiring activity to its lowest in three months

Watch: India bags US$ 40 million defence deal to supply 4 radar systems to Armenia

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/india-bags-us-40-million-defence-deal-to-supply-4-radar-systems-to-armenia-283579/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

"Alarm bells are ringing for Indian goods producers as the COVID-19 outbreak poses threats to exports and supply chains. Businesses became less confident about the year-ahead outlook for output, in turn restricting hiring activity," De Lima said.

On the price front, both input cost and output charge growth slowed last month, suggesting retail inflation may cool.

That would give policymakers some headroom to address key issues after the recent high inflation-low growth conundrum.

"Price data continued to highlight a lack of inflationary pressure in the sector. Only modest increases in input costs and output charges were recorded in February, a trend that has been a key theme of the manufacturing PMI survey for over a year," added de Lima.

&nbsp;

India's factory activity growth slowed in February from the previous month's eight-year high due to a modest weakening in demand and output, although overall conditions remained firm, a private survey showed on Monday.

India's factory activity growth slowed in February from the previous month's eight-year high due to a modest weakening in demand and output, although overall conditions remained firm, a private survey showed on Monday. The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, fell to 54.5 last month from January's 55.3, above a Reuters poll forecast of 52.8. It has stayed above the 50-point threshold mark, which separates growth from contraction, for over two years. Also read: Indian automakers say China coronavirus outbreak hitting parts supply "Factories in India continued to benefit from strong order flows in February, from both the domestic and international markets," Pollyanna De Lima, principal economist at IHS Markit, wrote in a release. "The pick-up in demand meant that companies were able to further lift production and input buying at historically-elevated rates." While the latest survey showed the new orders sub-index, a proxy for domestic demand, slipped to 57.5 in February, it remained above the long-term average since the index was introduced in March 2005. Also read: India's GDP growth slips to 4.7% in December quarter That encouraged firms to maintain solid output. However, foreign demand and optimism were weaker in February than in January on rising concerns the spread of coronavirus outside China would affect major Asian economies significantly. That subdued mood pushed the hiring activity to its lowest in three months Watch: India bags US$ 40 million defence deal to supply 4 radar systems to Armenia "Alarm bells are ringing for Indian goods producers as the COVID-19 outbreak poses threats to exports and supply chains. Businesses became less confident about the year-ahead outlook for output, in turn restricting hiring activity," De Lima said. On the price front, both input cost and output charge growth slowed last month, suggesting retail inflation may cool. That would give policymakers some headroom to address key issues after the recent high inflation-low growth conundrum. "Price data continued to highlight a lack of inflationary pressure in the sector. Only modest increases in input costs and output charges were recorded in February, a trend that has been a key theme of the manufacturing PMI survey for over a year," added de Lima.

India's factory activity growth slows in February on weak demand: Purchasing Managers' Index

Factory activity in China shrank in August for the fourth month in a row as the United States ramped up trade pressure and domestic demand remained sluggish, pointing to a further slowdown in the world's second-largest economy.

Factory activity in China shrank in August for the fourth month in a row as the United States ramped up trade pressure and domestic demand remained sluggish, pointing to a further slowdown in the world's second-largest economy. Persistent weakness in China's vast manufacturing sector could fuel expectations that Beijing needs to roll out stimulus more quickly, and more aggressively, to weather the biggest downturn in decades. The Purchasing Managers' Index (PMI) fell to 49.5 in August, China's National Bureau of Statistics said on Saturday, versus 49.7 in July, below the 50-point mark that separates growth from contraction every month. A poll showed analysts expected the August PMI to stay unchanged from the previous month. The official factory gauge showed growing trade frictions with the United States and cooling global demand continued to wreak havoc on China's exporters. Export orders fell for the 15th straight month in August, although at a slower pace, with the sub-index picking up to 47.2 from July's 46.9. Total new orders from home and abroad also continued to fall, indicating domestic demand remains soft, despite a flurry of growth-boosting measures over the past year. "Front-loading of exports to the US ahead of higher tariffs supported trade and overall activity growth, but this effect will likely fade in the next few months," said analysts at Goldman Sachs in a note. Manufacturers in consumption-oriented industries such as the auto sector have been especially vulnerable. Carmakers such as Geely and Great Wall have slashed expectations for sales and profits. The data showed activity at medium- and small-sized firms contracted, even as large manufacturers, many backed by the government, managed to expand in August. Factories continued to shed jobs in August amid the uncertain business outlook. The employment sub-index dropped to 46.9, compared with 47.1 in July. ESCALATIONS August saw dramatic escalations in the bitter year-long Sino-U.S. trade row, with President Donald Trump announcing early in the month that he would impose new tariffs on Chinese goods from Sept. 1, and China letting its yuan currency sharply weaken days later. After Beijing hit back with retaliatory tariffs, Trump said existing levies would also be raised in the coming months. The combined moves now effectively cover all of China's exports to the United States. Trump said late on Friday that trade teams from both sides continue to talk and will meet in September, but tariff increases on Chinese goods set to go into effect on Sunday will not be delayed. The US president had said earlier in the week that China wants to reach a deal 'very badly', citing what he described as increasing economic pressure on Beijing and job losses. But most analysts are highly doubtful of an end to the dispute any time soon, and some have recently cut growth forecasts for China in the coming quarters. The sudden deterioration in trade ties has prompted speculation over whether China needs to roll out more forceful measures to keep growth from sliding below 6 per cent this year, the bottom end of its target range of around 6.0-6.5 per cent. Analysts widely expect Beijing will cut some of its major lending rates in September for the first time in four years to help stabilise growth. But sources had told Reuters before the latest trade escalations that big benchmark rate cuts were considered a last resort, as policymakers worry that could fuel a further build-up in debt and squeeze bank's profit margins, heightening financial sector risks. So far, Beijing has relied on a combination of fiscal stimulus and monetary easing to deal with the economic slowdown, including hundreds of billions of dollars in infrastructure spending and tax cuts for companies. But analysts note infrastructure investment growth has remained subdued despite the earlier pump-priming measures, underlining the need for additional support. Services growth Growth in China's services sector activity picked up for the first time in five months in August, with the official numbers from a separate business survey rising to 53.8 from 53.7 in August. Beijing has been relying on a strong service sector to cushion some of the economic impacts of trade uncertainties and sluggish manufacturing activities. However, despite the higher overall figure, activity in the property industry contracted, the statistics bureau said in a statement. The services sector has been propped up by Chinese consumers' rising wages and robust spending power in recent years. However, the sector softened late last year amid a broader slowdown.

China's factory activity shrinks for fourth month as trade woes deepen

The country's manufacturing sector performance eased to an eight-month low in April as new business growth moderated, curbed by the elections and a challenging economic environment, a monthly survey showed Thursday.&nbsp;

The Nikkei India Manufacturing Purchasing Managers' Index declined from 52.6 in March to 51.8 in April, reflecting the weakest improvement in business conditions since August 2018.

This is the 21st consecutive month that the manufacturing PMI remained above the 50-point mark. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

April PMI data indicated that softer increase in new orders restricted the growth of output, employment and business sentiment "Although remaining inside expansion territory, growth continued to soften and the fact that employment increased at the weakest pace for over a year suggests that producers are hardly gearing up for a rebound," said Pollyanna De Lima, Principal Economist at IHS Markit and author of the report, said.

When looking at reasons provided by surveyed companies for the slowdown, disruptions arising from the elections was a key theme, Lima said, adding that "firms also seem to have adopted a wait-and-see approach on their plans until public policies become clearer upon the formation of a government".

The general election, that began on April 11, is currently underway. Votes will be counted on May 23.

On the prices front, input cost inflation eased to a 43-month low while the rate of charge inflation was marginal and below its long-run average.

"With price pressures in the manufacturing economy cooling and growth losing momentum, it's increasingly likely that the RBI may cut its official rate for a third successive time in June," Lima said.

The next meeting of RBI's Monetary Policy Committee is scheduled on June 3-6.&nbsp;

The country's manufacturing sector performance eased to an eight-month low in April as new business growth moderated, curbed by the elections and a challenging economic environment, a monthly survey showed Thursday.

The country's manufacturing sector performance eased to an eight-month low in April as new business growth moderated, curbed by the elections and a challenging economic environment, a monthly survey showed Thursday. The Nikkei India Manufacturing Purchasing Managers' Index declined from 52.6 in March to 51.8 in April, reflecting the weakest improvement in business conditions since August 2018. This is the 21st consecutive month that the manufacturing PMI remained above the 50-point mark. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction. April PMI data indicated that softer increase in new orders restricted the growth of output, employment and business sentiment "Although remaining inside expansion territory, growth continued to soften and the fact that employment increased at the weakest pace for over a year suggests that producers are hardly gearing up for a rebound," said Pollyanna De Lima, Principal Economist at IHS Markit and author of the report, said. When looking at reasons provided by surveyed companies for the slowdown, disruptions arising from the elections was a key theme, Lima said, adding that "firms also seem to have adopted a wait-and-see approach on their plans until public policies become clearer upon the formation of a government". The general election, that began on April 11, is currently underway. Votes will be counted on May 23. On the prices front, input cost inflation eased to a 43-month low while the rate of charge inflation was marginal and below its long-run average. "With price pressures in the manufacturing economy cooling and growth losing momentum, it's increasingly likely that the RBI may cut its official rate for a third successive time in June," Lima said. The next meeting of RBI's Monetary Policy Committee is scheduled on June 3-6.

India's manufacturing sector growth slows in April amid election uncertainty: Purchasing Managers' Index

<a href="https://www.google.com/aclk?sa=l&amp;ai=DChcSEwjc2fD2yrXhAhVUko8KHT1MCnkYABAAGgJzYg&amp;sig=AOD64_3Gb6Coj6PqOwU-qGxUeBIUw4r5KA&amp;adurl=&amp;q=&amp;nb=0&amp;res_url=https%3A%2F%2Fwww.wionews.com%2Fsearch%3Fq%3DTrade%2Btalks%2Bbetween%2Bthe%2BUnited%2BStates%2Band%2BChina%2B&amp;rurl=https%3A%2F%2Fwww.wionews.com%2F&amp;nm=6&amp;nx=399&amp;ny=7&amp;is=1202x458&amp;clkt=94&amp;bg=!_v2l_eVEuD9ApudyS78CAAAAKVIAAAAgmQFtM9jKSvmvOrOBIwNjZ9oIPqPo82L5hsJlUYLyCx7Wd0ncZ4xmQhoHHoMa1Qmg8IzmTk-ktvgqwAolxW8Ot9Zdx7AlC6QwtTsL_2PDmHXS--EN9vjMglEOdHV-3QK0AAPtyOACkwq-ZsVTgO6nK-kpGHg6CN5-Tsy4Kv0qdDiXS2hFDLRkQXLKjfWNusWAt0ziaplwLW6Mu44wcmSv6nOuv4WfHcyjX6gefQ3inQbu_79ZeTBfVYnFuv4bEbgA9SvKYlb9GPFEkbJn18rOfnDWzeJEphkoJZ6ng3oXrot_ANgvvRTTFndiTH4Ig61ByVl6HifcsrjjFlhDvnwxge6ZekNZPTC3QzvwrvglKcILSQujRSeHo48xanBjkdljIYiDK90VvTR4_HG3SLKGj0Bh5D1uDXzhwiXjGtUnPdGLP9Boy_x2BxI3snXAPxs_7Ft9IkrVrFl2RVH56ipwMLT3KEKC--9701QSHM7Kle0">Oil prices </a>were mixed on Thursday, with <a href="https://www.google.com/url?q=http://www.wionews.com/business-%26-economy/brent-oil-stabilises-at-72-per-barrel-over-economic-concerns-160370%3Ffirst_load%3Dno&amp;sa=U&amp;ved=0ahUKEwijkPyGy7XhAhXTmuYKHRm-BSEQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw2vMzTMtqeVC0b82HbW-olM">Brent </a>edging higher towards the psychologically important $70 level after easing in the previous session on data showing a surprise build in US&nbsp;inventories.

Brent futures were up 5 cents at $69.36 a barrel by 0224 GMT. On Wednesday, Brent dipped 6 cents, after touching $69.96, the highest since Nov. 12, when it last traded above $70.

U.S. <a href="https://www.google.com/aclk?sa=l&amp;ai=DChcSEwj6jviVy7XhAhUHJCsKHYFKC6sYABAAGgJzZg&amp;sig=AOD64_2mnZ8qzUlO2TINKdgItfqxqNkY8w&amp;adurl=&amp;q=&amp;nb=0&amp;res_url=https%3A%2F%2Fwww.wionews.com%2Fsearch%3Fq%3DTrade%2Btalks%2Bbetween%2Bthe%2BUnited%2BStates%2Band%2BChina%2B&amp;rurl=https%3A%2F%2Fwww.wionews.com%2F&amp;nm=20&amp;nx=470&amp;ny=2&amp;is=1202x230&amp;clkt=67&amp;bg=!rK-lr7dEAcS8vbEKnCkCAAAAJVIAAAAUmQFtcxWS4V_CxSJE0KxqciXU6YY6z9Lv2LM40Y63ILiiMPCuMIYF1A-pMuwgLby1UDrA0-V-CEefxlwkDOFObaZBrmnS-qkWKYFPqDLRx3LluJcK17IImhMsMBXlwkMQn07egZ_VhH5SInN25QHVwIQGG1ekhie3dxPVI9knVbBbmF6y1B1D2qHS9HY33C0T7lxWaH-RYzj4SqTKes2jR7z3pen3zO9AsrNtWNd25-jSg5cknYGZpxi2zV81jvEFy3iXnsiWOBGXkk9t_DQSMlKNa3iOtV0cksAcqK6Bieege60Tl1pakcFOYODQlidCIvx28trGs2wo4dEbTy6PmLLNUu-n4Tqu4lHGknbZXNWz_S6Fxya9re4--bgJhNETiA_qoxO1C6kxnHX_YiRgp4kU7PuNpeUcPLyB3oj3u-hKmOSG6dDEPmohVk_d9sVVxWF6n65_vDOApbUu3DqzUJk4ek9RHxP6Q6YhAsXR4fo">West Texas Intermediate </a>(WTI) crude fell 3 cents to $62.43 a barrel. The contract dropped 12 cents in the previous session after briefly hitting $62.99, also the highest since November.

Global benchmark Brent has risen nearly 30 per cent this year, while WTI has gained nearly 40 per cent, with prices underpinned by tightening global supply and signs of demand picking up.

"There is a clear bias to the upside with the supply restrictions," said <a href="https://www.google.com/url?q=https://www.wionews.com/business-economy/oil-rallies-as-polls-show-diminished-chance-that-britain-will-vote-to-leave-the-eu-822&amp;sa=U&amp;ved=0ahUKEwiF2Pely7XhAhUT4XMBHc74DjYQFggIMAE&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw3As6Hx6UXKjvrbj425uOju">Michael McCarthy</a>, chief market strategist at CMC Markets in Sydney, pointing to supply cuts by OPEC and others along with sanctions on Iran.

"And there's a much better than expected demand picture after the recent China and US&nbsp;PMI numbers, along with a potential kicker from any U.S.-China trade agreement," he said.

The Caixin/Markit services purchasing managers' index (PMI) rose to 54.4, the highest since January 2018 and up from February's 51.1, a fourth-month low, a private business survey of China's service sector showed on Wednesday.

Trade talks between the United States and China made "good headway" last week in Beijing and the two sides aim to bridge differences during further talks, White House economic adviser Larry Kudlow said on Wednesday.

Crude oil is also supported by an agreement between the Organization of the Petroleum Exporting Countries and allies such as Russia, a group known as OPEC+, to reduce oil output by about 1.2 million bpd this year.

U.S. pressure on Iran is increasing, with a senior Trump administration official saying earlier this week that Washington is considering more sanctions on the Middle Eastern country.

Still, crude oil inventories in the United States rose by 7.2 million barrels last week, as net imports climbed, the Energy Information Administration said on Wednesday. Analysts had forecast a decrease of 425,000 barrels.

U.S. crude production climbed 100,000 barrels per day (bpd) to a record 12.2 million bpd, after hovering around 12-12.1 million bpd since mid-February, according to the data from the Energy Information Administration.

Oil prices were mixed on Thursday, with Brent edging higher towards the psychologically important $70 level after easing in the previous session on data showing a surprise build in US inventories.

Oil prices were mixed on Thursday, with Brent edging higher towards the psychologically important $70 level after easing in the previous session on data showing a surprise build in US inventories. Brent futures were up 5 cents at $69.36 a barrel by 0224 GMT. On Wednesday, Brent dipped 6 cents, after touching $69.96, the highest since Nov. 12, when it last traded above $70. U.S. West Texas Intermediate (WTI) crude fell 3 cents to $62.43 a barrel. The contract dropped 12 cents in the previous session after briefly hitting $62.99, also the highest since November. Global benchmark Brent has risen nearly 30 per cent this year, while WTI has gained nearly 40 per cent, with prices underpinned by tightening global supply and signs of demand picking up. "There is a clear bias to the upside with the supply restrictions," said Michael McCarthy, chief market strategist at CMC Markets in Sydney, pointing to supply cuts by OPEC and others along with sanctions on Iran. "And there's a much better than expected demand picture after the recent China and US PMI numbers, along with a potential kicker from any U.S.-China trade agreement," he said. The Caixin/Markit services purchasing managers' index (PMI) rose to 54.4, the highest since January 2018 and up from February's 51.1, a fourth-month low, a private business survey of China's service sector showed on Wednesday. Trade talks between the United States and China made "good headway" last week in Beijing and the two sides aim to bridge differences during further talks, White House economic adviser Larry Kudlow said on Wednesday. Crude oil is also supported by an agreement between the Organization of the Petroleum Exporting Countries and allies such as Russia, a group known as OPEC+, to reduce oil output by about 1.2 million bpd this year. U.S. pressure on Iran is increasing, with a senior Trump administration official saying earlier this week that Washington is considering more sanctions on the Middle Eastern country. Still, crude oil inventories in the United States rose by 7.2 million barrels last week, as net imports climbed, the Energy Information Administration said on Wednesday. Analysts had forecast a decrease of 425,000 barrels. U.S. crude production climbed 100,000 barrels per day (bpd) to a record 12.2 million bpd, after hovering around 12-12.1 million bpd since mid-February, according to the data from the Energy Information Administration.

Oil prices edge lower after US inventories build

Britain's vital services sector shrank in March for the first time in almost three years, with activity slammed by Brexit turmoil and flat economic growth, a key survey showed Wednesday.

The purchasing managers' index (PMI) for services fell from 51.3 in February to 48.9 in March, according to IHS Markit, which compiles the data.

That was the lowest level since July 2016, which was one month after Britons voted in favour of leaving the European Union.

The figure below 50 in the index indicates that the service sector, which accounts for some 80 per cent of British gross domestic product, is in contraction.

"A drop in service sector activity indicates that UK GDP contracted in March, with the economy stalling over the first quarter as a whole and at risk of sliding into a deepening downturn in coming months," said Chris Williamson, a chief business economist at IHS Markit.

The sector is widely regarded as the engine of the British economy -- and any weakness can, therefore, slam the brakes on growth.&nbsp;

Britain's economy had already struggled in the fourth quarter of last year, with anaemic economic growth of just 0.2 per cent.

"Both the services and construction sectors are now in decline and manufacturing is only expanding because of emergency stockpiling ahead of Brexit," said Williamson.

He added that the underlying picture of demand is even worse than the headline numbers suggest.

"Service sector order books have contracted at the steepest rate since the height of the global financial crisis in 2009 so far this year, with companies reporting that Brexit uncertainty has dampened demand and led to cancelled or deferred spending, exacerbating a headwind from slower global economic growth," he said.

The March 2019 reading shocked economists because market expectations had been for a drop in the index -- which is regarded as a crucial barometer of UK business activity -- to 50.9.

"The latest UK services PMI makes it clear that the economy is being hit hard by all the uncertainty in surrounding Brexit," noted ING economist James Smith.

He added: "Of course, it's important to remember that PMIs don't always precisely reflect the extent of a slowdown, merely that an increasing number of firms are reporting worsening conditions.

"That said, this latest reading implies that the first quarter as a whole could see near-stagnant growth." 
&nbsp;

Britain's vital services sector shrank in March for the first time in almost three years, with activity slammed by Brexit turmoil and flat economic growth, a key survey showed Wednesday.

Britain's vital services sector shrank in March for the first time in almost three years, with activity slammed by Brexit turmoil and flat economic growth, a key survey showed Wednesday. The purchasing managers' index (PMI) for services fell from 51.3 in February to 48.9 in March, according to IHS Markit, which compiles the data. That was the lowest level since July 2016, which was one month after Britons voted in favour of leaving the European Union. The figure below 50 in the index indicates that the service sector, which accounts for some 80 per cent of British gross domestic product, is in contraction. "A drop in service sector activity indicates that UK GDP contracted in March, with the economy stalling over the first quarter as a whole and at risk of sliding into a deepening downturn in coming months," said Chris Williamson, a chief business economist at IHS Markit. The sector is widely regarded as the engine of the British economy -- and any weakness can, therefore, slam the brakes on growth. Britain's economy had already struggled in the fourth quarter of last year, with anaemic economic growth of just 0.2 per cent. "Both the services and construction sectors are now in decline and manufacturing is only expanding because of emergency stockpiling ahead of Brexit," said Williamson. He added that the underlying picture of demand is even worse than the headline numbers suggest. "Service sector order books have contracted at the steepest rate since the height of the global financial crisis in 2009 so far this year, with companies reporting that Brexit uncertainty has dampened demand and led to cancelled or deferred spending, exacerbating a headwind from slower global economic growth," he said. The March 2019 reading shocked economists because market expectations had been for a drop in the index -- which is regarded as a crucial barometer of UK business activity -- to 50.9. "The latest UK services PMI makes it clear that the economy is being hit hard by all the uncertainty in surrounding Brexit," noted ING economist James Smith. He added: "Of course, it's important to remember that PMIs don't always precisely reflect the extent of a slowdown, merely that an increasing number of firms are reporting worsening conditions. "That said, this latest reading implies that the first quarter as a whole could see near-stagnant growth."

UK's service sector shrinks for first time since July 2016: Data

Factory activity in China contracted to a three-year low in February as export orders fell at the fastest pace since the global financial crisis, highlighting deepening cracks in an economy facing weak demand at home and abroad.

The gloomy findings are likely to reinforce views that the world's second-largest economy is still losing steam, after growth last year cooled to a nearly 30-year low.

Even with increasing government stimulus to spur activity, concerns are growing that China may be at risk of a sharper slowdown if current <a href="http://www.wionews.com/world/trump-raises-hopes-of-trade-deal-on-final-day-of-us-china-talks-199416">Sino-US trade talks </a>fail to relieve some of the pressure.

The official Purchasing Managers' Index (PMI) fell for the third straight month, dropping to 49.2 in February from 49.5 in January, according to data released by the National Bureau of Statistics (NBS) on Thursday. The 50-mark separates growth from contraction on a monthly basis.

Analysts surveyed by Reuters had forecast the gauge would stay unchanged from January's 49.5.

"Unless the trade war truly turns into an extended truce, the weakening trend may not end quickly," Iris Pang, Greater China economist at ING, said in a note. "As such we expect March's PMI to fall, too."

Manufacturing output contracted in February for the first time since January 2009, during the depths of the global crisis. A breakdown of the survey's findings showed the output sub-index fell to 49.5 from 50.9 the previous month.

Manufacturers also continued to cut jobs, a trend Beijing is closely watching as its weighs more support measures.

New export orders shrank for a ninth straight month, and at a sharper rate, amid faltering global demand. The sub-index fell to 45.2, the lowest since February 2009, from 46.9 in January.

But total new orders -- an indicator of future activity -- edged back into expansionary territory, suggesting some improvement in domestic demand. The sub-index rose to 50.6 from 49.6 in January, after falling for two consecutive months.

However, China watchers typically advise caution over interpreting the country's economic data early in the year because of the timing of the week-long Lunar New Year holidays.

Many firms scale back operations or close for long periods around the holidays, which began on February 4 this year. But workers, business owners and labour activists have told Reuters that companies have shut earlier than usual as the trade war bites, with some likely to close for good.

Ford Motor Co's joint venture in China has quietly begun dismissing thousands of its workers due to weak auto sales in the world’s second-largest economy, the New York Times reported on Wednesday.

Record lending by Chinese banks in January and a sharp rebound in its stock markets have lifted some of the gloom hanging over its economy.

But analysts say it will take months to see if the strong credit impulse translates into improved business activity, assuming companies are borrowing for fresh expansion or investment, not merely refinancing existing debt.

Some economists believe growth could even dip below 6 per cent in the first half -- from 6.4 per cent in the fourth quarter -- before stabilising later in the year as a series of support measures in 2018 and 2019 begin to take effect.

Uncertainty also hangs over ongoing China-US trade talks.

President Donald Trump said on Monday that he may soon sign a deal with Chinese President Xi Jinping to end the countries' trade war, if the two sides can bridge remaining differences

But the lead US negotiator said on Wednesday it was too early to predict the outcome.

US issues with China are "too serious" to be resolved with promises from Beijing to purchase more US goods and any deal between the two countries must include a way to ensure commitments are met, US Trade Representative Robert Lighthizer said.

Growth in China's services industry also cooled in February after rebounding for two straight months, another sign of strain as consumers turn more cautious about spending.

Factory activity in China contracted to a three-year low in February as export orders fell at the fastest pace since the global financial crisis, highlighting deepening cracks in an economy facing weak demand at home and abroad.

Factory activity in China contracted to a three-year low in February as export orders fell at the fastest pace since the global financial crisis, highlighting deepening cracks in an economy facing weak demand at home and abroad. The gloomy findings are likely to reinforce views that the world's second-largest economy is still losing steam, after growth last year cooled to a nearly 30-year low. Even with increasing government stimulus to spur activity, concerns are growing that China may be at risk of a sharper slowdown if current Sino-US trade talks fail to relieve some of the pressure. The official Purchasing Managers' Index (PMI) fell for the third straight month, dropping to 49.2 in February from 49.5 in January, according to data released by the National Bureau of Statistics (NBS) on Thursday. The 50-mark separates growth from contraction on a monthly basis. Analysts surveyed by Reuters had forecast the gauge would stay unchanged from January's 49.5. "Unless the trade war truly turns into an extended truce, the weakening trend may not end quickly," Iris Pang, Greater China economist at ING, said in a note. "As such we expect March's PMI to fall, too." Manufacturing output contracted in February for the first time since January 2009, during the depths of the global crisis. A breakdown of the survey's findings showed the output sub-index fell to 49.5 from 50.9 the previous month. Manufacturers also continued to cut jobs, a trend Beijing is closely watching as its weighs more support measures. New export orders shrank for a ninth straight month, and at a sharper rate, amid faltering global demand. The sub-index fell to 45.2, the lowest since February 2009, from 46.9 in January. But total new orders -- an indicator of future activity -- edged back into expansionary territory, suggesting some improvement in domestic demand. The sub-index rose to 50.6 from 49.6 in January, after falling for two consecutive months. However, China watchers typically advise caution over interpreting the country's economic data early in the year because of the timing of the week-long Lunar New Year holidays. Many firms scale back operations or close for long periods around the holidays, which began on February 4 this year. But workers, business owners and labour activists have told Reuters that companies have shut earlier than usual as the trade war bites, with some likely to close for good. Ford Motor Co's joint venture in China has quietly begun dismissing thousands of its workers due to weak auto sales in the world’s second-largest economy, the New York Times reported on Wednesday. Record lending by Chinese banks in January and a sharp rebound in its stock markets have lifted some of the gloom hanging over its economy. But analysts say it will take months to see if the strong credit impulse translates into improved business activity, assuming companies are borrowing for fresh expansion or investment, not merely refinancing existing debt. Some economists believe growth could even dip below 6 per cent in the first half -- from 6.4 per cent in the fourth quarter -- before stabilising later in the year as a series of support measures in 2018 and 2019 begin to take effect. Uncertainty also hangs over ongoing China-US trade talks. President Donald Trump said on Monday that he may soon sign a deal with Chinese President Xi Jinping to end the countries' trade war, if the two sides can bridge remaining differences But the lead US negotiator said on Wednesday it was too early to predict the outcome. US issues with China are "too serious" to be resolved with promises from Beijing to purchase more US goods and any deal between the two countries must include a way to ensure commitments are met, US Trade Representative Robert Lighthizer said. Growth in China's services industry also cooled in February after rebounding for two straight months, another sign of strain as consumers turn more cautious about spending.

China February factory activity shrinks to three-year low, export orders worst in a decade

Euro zone manufacturers ended 2017 by ramping up activity at the fastest pace in more than two decades, a survey showed on Tuesday, and rising demand suggests they will start the new year on a high.

The bloc&#39;s economy outpaced its peers last year, and the European Central Bank plans to scale back its stimulus programme from this month.

IHS Markit&#39;s December final manufacturing Purchasing Managers&#39; Index for the bloc was 60.6, matching an earlier preliminary reading and above November&#39;s 60.1. That was the highest since the survey began in June 1997.

An index measuring output, which feeds into a composite PMI due on Thursday and seen as a good guide to economic health, rose to 62.2 from November&#39;s 61.0 - its highest in over 17 years and has only been above that once in the survey&#39;s history.

&quot;The euro zone manufacturing boom gained further momentum in December, rounding off the best year on record and setting the scene for a strong start to 2018,&quot; said Chris Williamson, chief business economist at IHS Markit.

&quot;Forward-looking indicators bode well for the new year: new orders rose at a near-record pace while purchasing growth hit a new peak as firms readied themselves for higher production. Meanwhile, job creation was maintained at November&#39;s record pace.&quot;

Despite factories raising prices again last month, albeit, at a slightly weaker rate than in November, an index measuring new orders nudged up to 61.5 from 61.4, a level not seen since around the start of the century.

Inflation was 1.5 per cent in November, below the ECB&#39;s 2 per cent target ceiling, but the central bank announced in October it will halve its monthly asset purchases to 30 billion euros from January.

A majority of economists in a Reuters poll last year said they thought the ECB should shut the door on the programme in September, but they were split on whether it actually would.

Eurozone manufacturers ended 2017 by ramping up activity at the fastest pace in more than two decades, a survey showed on Tuesday, and rising demand suggests they will start the new year on a high

Euro zone manufacturers ended 2017 by ramping up activity at the fastest pace in more than two decades, a survey showed on Tuesday, and rising demand suggests they will start the new year on a high. The bloc's economy outpaced its peers last year, and the European Central Bank plans to scale back its stimulus programme from this month. IHS Markit's December final manufacturing Purchasing Managers' Index for the bloc was 60.6, matching an earlier preliminary reading and above November's 60.1. That was the highest since the survey began in June 1997. An index measuring output, which feeds into a composite PMI due on Thursday and seen as a good guide to economic health, rose to 62.2 from November's 61.0 - its highest in over 17 years and has only been above that once in the survey's history. "The euro zone manufacturing boom gained further momentum in December, rounding off the best year on record and setting the scene for a strong start to 2018," said Chris Williamson, chief business economist at IHS Markit. "Forward-looking indicators bode well for the new year: new orders rose at a near-record pace while purchasing growth hit a new peak as firms readied themselves for higher production. Meanwhile, job creation was maintained at November's record pace." Despite factories raising prices again last month, albeit, at a slightly weaker rate than in November, an index measuring new orders nudged up to 61.5 from 61.4, a level not seen since around the start of the century. Inflation was 1.5 per cent in November, below the ECB's 2 per cent target ceiling, but the central bank announced in October it will halve its monthly asset purchases to 30 billion euros from January. A majority of economists in a Reuters poll last year said they thought the ECB should shut the door on the programme in September, but they were split on whether it actually would.

Euro zone factories ended 2017 with record high growth: PMI

Hit hard by the demonetisation move, the manufacturing sector plunged into contraction in December -- the first shrinkage in a year -- as the cash crunch took its toll on new business orders and factory output, a monthly survey showed today.

The Nikkei Markit India Manufacturing Purchasing Managers&#39; Index (PMI) -- which measures manufacturing sector activity -- fell to 49.6, down from 52.3 in November.

The index slipped below the crucial 50 threshold -- which separates contraction from expansion -- for the first time since December 2015. This also marked the biggest month-on-month decline in the index in over eight years or since November 2008 when the global economy had slipped into a severe downturn after the Lehman bank collapse.

&quot;Having held its ground in November, following the unexpected withdrawal of Rs 500 and 1,000 bank notes from circulation, India&#39;s manufacturing industry slid into contraction at the end of 2016,&quot; said Pollyanna De Lima, Economist at IHS Markit and author of the report.

Lima added that &quot;cash flow issues among firms also led to reductions in purchasing activity and employment&quot;.

Survey participants widely blamed the withdrawal of high-value rupee notes for the downturn as cash shortage in the economy reportedly resulted in fewer levels of new orders.

Businesses also highlighted challenging conditions in external markets, with a fall in new businesses from abroad ending a six-month long growth.

Though December saw a mild decline in manufacturing output, the average reading for October-December remained in the &quot;growth terrain&quot;, suggesting a positive contribution from the sector to overall GDP in the third quarter of 2016-17, the survey said.

Several researchers and economists have lowered their near-term GDP growth forecasts in the wake of the demonetisation move, though there is a broader view that the decision would help the economy grow faster in the longer run.

&quot;With the window for exchanging notes having closed at the end of December, January data will be key in showing whether the sector will see a quick rebound,&quot; Lima added.

The report said the higher prices paid for a range of raw materials made average cost burden increase for the 15th straight month in December, with the rate of inflation picking up since November.

(PTI) 
&nbsp;

This also marked the biggest month-on-month decline in the index since November 2008, when the global economy collapsed

Hit hard by the demonetisation move, the manufacturing sector plunged into contraction in December -- the first shrinkage in a year -- as the cash crunch took its toll on new business orders and factory output, a monthly survey showed today. The Nikkei Markit India Manufacturing Purchasing Managers' Index (PMI) -- which measures manufacturing sector activity -- fell to 49.6, down from 52.3 in November. The index slipped below the crucial 50 threshold -- which separates contraction from expansion -- for the first time since December 2015. This also marked the biggest month-on-month decline in the index in over eight years or since November 2008 when the global economy had slipped into a severe downturn after the Lehman bank collapse. "Having held its ground in November, following the unexpected withdrawal of Rs 500 and 1,000 bank notes from circulation, India's manufacturing industry slid into contraction at the end of 2016," said Pollyanna De Lima, Economist at IHS Markit and author of the report. Lima added that "cash flow issues among firms also led to reductions in purchasing activity and employment". Survey participants widely blamed the withdrawal of high-value rupee notes for the downturn as cash shortage in the economy reportedly resulted in fewer levels of new orders. Businesses also highlighted challenging conditions in external markets, with a fall in new businesses from abroad ending a six-month long growth. Though December saw a mild decline in manufacturing output, the average reading for October-December remained in the "growth terrain", suggesting a positive contribution from the sector to overall GDP in the third quarter of 2016-17, the survey said. Several researchers and economists have lowered their near-term GDP growth forecasts in the wake of the demonetisation move, though there is a broader view that the decision would help the economy grow faster in the longer run. "With the window for exchanging notes having closed at the end of December, January data will be key in showing whether the sector will see a quick rebound," Lima added. The report said the higher prices paid for a range of raw materials made average cost burden increase for the 15th straight month in December, with the rate of inflation picking up since November. (PTI)

Demonetisation: India's manufacturing sector contracts for first time in a year

Manufacturing activity in China expanded at its fastest pace in more than two years last month on improving production and demand, an official measure showed Tuesday, boding well for the world&#39;s second-largest economy.

Investors closely watch the purchasing managers&#39; index (PMI), which gauges conditions at factories and mines, as the first indicator of the health of the economy each month.

The PMI came in at 51.2 for October, its highest since July 2014, figures from the National Bureau of Statistics (NBS) showed.

It rose from September&#39;s 50.4 and was well ahead of the median forecast of 50.3 in a Bloomberg News survey of economists.&nbsp;

A figure above 50 signals expanding activity, while anything below demonstrates shrinkage.&nbsp;

&quot;Production and market demand is picking up again, accelerating expansion,&quot; NBS analyst Zhao Qinghe said in a statement.

But Zhao added that downward pressures remain on imports and exports due to the sluggish recovery in global growth.

The key manufacturing sector has been struggling for months in the face of sagging world demand for Chinese products and excess industrial capacity left over from the country&#39;s infrastructure boom.

&quot;This might be as good as it gets,&quot; HSBC Holdings economic researcher Frederic Neumann told Bloomberg.

&quot;A generous stimulus injected earlier this year is still winding itself through the economy,&quot; he added, and with the government now &quot;tapping the brakes&quot; in the property sector &quot;growth will likely cool again in the coming months&quot;.

China is a vital driver of global growth, but its economy expanded only 6.9 per cent in 2015 -- its weakest rate in a quarter of a century -- and has slowed further this year.

Beijing has said it wants to reorient the economy away from relying on debt-fuelled investment to boost growth and towards a consumer-driven model, but the transition has proven challenging.

(AFP)

The purchasing managers' index is the first indicator of an economy's health

Manufacturing activity in China expanded at its fastest pace in more than two years last month on improving production and demand, an official measure showed Tuesday, boding well for the world's second-largest economy. Investors closely watch the purchasing managers' index (PMI), which gauges conditions at factories and mines, as the first indicator of the health of the economy each month. The PMI came in at 51.2 for October, its highest since July 2014, figures from the National Bureau of Statistics (NBS) showed. It rose from September's 50.4 and was well ahead of the median forecast of 50.3 in a Bloomberg News survey of economists. A figure above 50 signals expanding activity, while anything below demonstrates shrinkage. "Production and market demand is picking up again, accelerating expansion," NBS analyst Zhao Qinghe said in a statement. But Zhao added that downward pressures remain on imports and exports due to the sluggish recovery in global growth. The key manufacturing sector has been struggling for months in the face of sagging world demand for Chinese products and excess industrial capacity left over from the country's infrastructure boom. "This might be as good as it gets," HSBC Holdings economic researcher Frederic Neumann told Bloomberg. "A generous stimulus injected earlier this year is still winding itself through the economy," he added, and with the government now "tapping the brakes" in the property sector "growth will likely cool again in the coming months". China is a vital driver of global growth, but its economy expanded only 6.9 per cent in 2015 -- its weakest rate in a quarter of a century -- and has slowed further this year. Beijing has said it wants to reorient the economy away from relying on debt-fuelled investment to boost growth and towards a consumer-driven model, but the transition has proven challenging. (AFP)

China manufacturing index at highest in 2 years