China Manufacturing PMI Jumps To 51.6 - Caixin

Posted September 02, 2017

The central bank has cut the benchmark Selic interest rate aggressively to protect the fragile recovery, with 12-month inflation at its lowest in eighteen years. Readings above 50 denote expansion in activity. This was highlighted by the seasonally adjusted IHS Markit/CIPS Purchasing Managers' Index® (PMI® ) posting 56.9, up from 55.3 in July, to its second highest level in over three years.

A rebound in manufacturing sector bodes well for a higher GDP growth rate in the current July-September quarter.

In China, manufacturing activity accelerated to a six-month high, buoyed by the sharpest increase in new export orders in seven years and higher prices, a private survey showed. This is looking increasingly likely during the near-term, given the breadth of the expansion.

Numbers of the Day: 18500 people
Myanmar security forces have been clashing with the Rohingya since August 25, when Rohingya insurgents attacked police outposts. Islam said his team of border guards are intercepting the Rohingyas arriving in Bangladesh to "prevent the illegal intrusion".

Supply shortages put upward pressure on prices and there were further reports of capacity constraints.

The jump in production was underpinned by faster intakes of new work, which filtered through to the labour market as job creation was recorded for the 13th straight month.

However, s terling's slump has proved a double-edged sword for manufacturers, fuelling demand by making British goods cheaper on global markets while ramping up import costs.

Situation much under control: BMC chief on Mumbai Floods
City managers have warned of additional power cuts across the metropolitan area if flood waters continue to rise. A man wades through a waterlogged street following heavy rains in Mumbai , India, Tuesday, Aug. 29, 2017.

That was in-line with a reading from an official PMI released the day before, although Caixin's gauge was boosted by "robust" foreign demand, contrary to the findings from the first of the two surveys, Simona Gambarini at Capital Economics pointed out.

"Indeed, the U.K.'s PMI remained below the Eurozone's (57.4) for the fourth consecutive month". August´s 56.9 is the second highest manufacturing PMI reported for the United Kingdom in over three years.

This was above consensus forecasts of 55.0, the strongest reading for four months and the second-highest reading in 3 years.

Kushner leads United States delegation for peace talks in Middle East
Even before the meeting، PA officials expressed pessimism that Washington's peace efforts could bear fruit. We know that things are hard and complicated, but nothing is impossible with honest efforts".

This week, Bank of England policymaker Michael Saunders claimed a "modest" increase was essential to control United Kingdom inflation, despite admitting that Brexit uncertainty was hurting consumer confidence.