Manufacturing sector bounces back into growth zone after GST-related contraction: PMI


The UK manufacturing sector expanded at the fastest pace in four months in August driven by new orders, amid broad based expansion across all product categories.

The Nikkei Myanmar Manufacturing Purchasing Managers' Index, or PMI, rose slightly to 49.3 in August from 49.1 in July, the NAR reported.

That's up from 51.1, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

The index for new export orders was also revised down to 51.3 from a flash reading of 52.2.

Commenting on the data, Rob Dobson, director of IHS Markit, said: "The key question is whether this positive start to the second half of the year can be sustained".

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A PMI of 56.9 represented the second-highest level of activity in the industry in three years, and rose from 55.3 in July. Business conditions improved across the three main subsectors - consumer, intermediate and investment goods - and at smaller and large-scale producers alike.

It said survey data had also revealed a fractional rise in employment in August, following a moderate contraction the previous month. Purchase price inflation accelerated for the first time in seven months during August.

"After a loss of momentum in fiscal year (FY) 2016, IHS Markit forecast the Indian economy to recover marginally in FY 2017, with real GDP growth expected at 7.3 per cent", Lima added. "In addition, manufacturers' optimism regarding future production growth only edged up in August to its five-year average, suggesting that they will invest only cautiously in extra capacity".

Group's Australian Performance of Manufacturing Index (PMI) jumped by 3.8 points to 59.8 last month, marking an eleventh consecutive month of growth.

Greece's jobless rate stood at 21.7 percent in May, the highest in the euro zone. Still, the PMI report showed input costs rising due to higher prices for energy, fuel and metals.