Strong Canadian manufacturing growth maintained in March
04 April, 2018, 02:05
The average PMI reading over the opening three months of 2018 meanwhile indicated the best quarterly performance since the third quarter of 2014.
The PMI had previously touched its highest level of 52 in November 2017, from its lowest level of 46.9 on June 30, 2017. Business conditions have been strengthening in each of the past 28 months.
In line with growing demand, Indonesian manufacturing companies also raised their purchasing activity, albeit slightly. As the PMI fell, so did the new orders, production, employment, supplier deliveries and inventories indices. The rise in overall new orders was supported by a faster increase in new business from overseas, the most marked since last October.
"With cost inflationary pressures also moderating to provide some respite for margins, the sector looks set to make further slow and steady progress as we head through the spring", Dobson said. The rate of contraction accelerated since February but remained modest. That said, the rate of job creation eased to a seven-month low. Backlogs of work at euro area manufacturers also increased during March, taking the current sequence of expansion to nearly three years.
The data for March has shown slowing levels of manufacturing activity across the currency bloc, in some cases by more than forecast. "PMI data suggests that any improvements in demand stemmed from domestic markets, while sales in worldwide markets reportedly fell due to uncompetitive prices". Two views are still showing strong economic reports with growth, but perhaps at lower growth overall, at a time when prices for labor, inputs and goods are rising. However, the degree to which output rose was modest and the weakest since October. The increase was still solid, however, extending the current sequence of growth to 28 months.
Inflation was 1.4 per cent last month, official flash estimates due on Wednesday are expected to show according to a Reuters poll, still well below the ECB's 2 per cent target ceiling.
On the employment front, firms reduced their payroll numbers for the first time in eight months, albeit at a fractional pace.
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