Economy

Manufacturing growing but at slower pace

Manufacturing growing but at slower pace

Manufacturers also used inventories to help fulfill new orders in September.

The headline Markit Poland Manufacturing PMI is a composite single-figure indicator of manufacturing performance. Other large sub-sectors grew at a decelerating pace this month.

The Australian PMI® is now leading the ABS manufacturing output data by about three months.

"The euro-zone manufacturing boom kicked into an even higher gear in September", said Chris Williamson, chief economist at IHS Markit.

Stocks of finished goods declined for the sixth consecutive month during September, with panellists reporting efforts to streamline inventories.

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Positive outlook Confidence in United Kingdom manufacturing is also high, with over 51 percent of manufacturing companies surveyed expecting further growth in production over the next 12 months. A gauge for employment rose at the fastest pace since the survey began in 1997. Both input and output costs are rising at a greater rate ad this has again increased vendor lead times to the longest for nearly six and a half years. This reflected a combination of rising commodity prices, the exchange rate, and increased supply-chain pressures.

"However, optimism regarding output remained high, encouraging firms to increase purchases of inputs", he said. The rate of expansion was solid, and the fastest since April. Also, Vice Chairman Daniel Yergin sold 43,657 shares of IHS Markit stock in a transaction dated Wednesday, July 5th. Delivery times shortened for the first time in seven months during September, albeit fractionally.

The report noted that "September data showed that output volumes rose at the weakest rate since the survey started in January 2016", blaming "a softening sales trend", reduced overtime work, input shortages and rising cost of raw materials.

"Manufacturers are, therefore, well placed to record further growth during the final quarter", said Andrew Harker, associate director at IHS Markit. "Meanwhile, concerns regarding future business prospects echoed a note of caution, with confidence dipping to the lowest level since December 2012".

Input prices rose to the strongest level in four months at 62.6 from 58.7 as USA supply disruptions following Hurricane Harvey raised the cost of raw materials.