United Kingdom manufacturing still on the up


IHS Markit director Rob Dobson said: "Although it looks as if the sector made solid progress through the third quarter as a whole, the growth slowdown in September is a further sign that momentum is being lost across the broader United Kingdom economy".

The seasonally adjusted Nikkei Philippines Manufacturing Purchasing Managers' Index (PMI) picked up to 50.8 in September from August's record-low 50.6, ending the quarter on a "subdued" note.

The 50-point line separates expansion from contraction in activity.

Meanwhile, the pace of job creation eased to the weakest since October 2016. The rate of input price inflation quickened to the fastest since April, which has led to a pick-up in output charges, data showed.

The pound slid in late morning trading after a closely-watched index showed the UK's manufacturing sector was weaker than expected in September.

However, September's reading still marked the 14th straight month of rising production, thanks in part to new business, with companies reporting "solid" demand from both domestic and overseas markets.

With China being a key destinations for Australia's commodity exports, the rise in factory activity suggests that demand for Australian exports may rise over the coming months.

More news: Amazon Announces New Echo, Echo Plus & Echo Spot Alarm Clock
More news: Marouane Fellaini stars as United hit Palace for four
More news: Engine destroyed on Air France flight from Paris to LA

"This will depend on factors such as actual fulfilment and value of orders, as well as cost pressures faced by businesses".

"The rebound in the Greek manufacturing sector continued at the end of the third quarter", said IHS Markit economist Alex Gill. All three broad sectors saw a production increase, led by consumer goods firms.

"The weak peso continued to pose a problem for manufacturers".

This is while a Thursday speech from European Central Bank chief Mario Draghi and Friday's monthly USA nonfarm payrolls number will also influence Sterling pairs from the opposite direction.

"The survey data pointed to further slowing in output growth and a modest sales trend while employment shrank again as firms indicated sufficient manpower to meet production demand", he added.

The Bangko Sentral ng Pilipinas (BSP) on Friday last week estimated that inflation likely clocked 2.8-3.6% in September from August's 3.1%, while BusinessWorld's poll of 13 economists yielded a 3.2% median.