Brexit latest: Manufacturing misses City growth expectations for June

Posted July 04, 2017

"Overall, the outlook for the manufacturing sector remains optimistic into the third quarter, underpinned by buoyant business confidence and strong sales volumes", Mr.

The headline Purchasing Managers' Index climbed to 53.1 in June from 52.7 in May.

Both output and new orders decreased solidly in June while production fell at the fastest rate since June 2016, while the rate of decline in new work accelerated to the most marked since the end of past year.

The June PMI data underpins the view that China's growth has continued to be strong at the end of the second quarter. This was the weakest expansion in the survey since February this year. Fourteen manufacturing sub-sectors recorded increase in production level during the review month. Furthermore, the slowdown in manufacturing activity is reported across all sectors - consumer, intermediate and investment goods. Malaysia's exports in April 2017 grew by 20.6% year-on-year to RM73.97 billion, marking the fifth consecutive month of double-digit growth seen since December 2016.

India's manufacturing sector's expansion slowed last month due to weak demand, a key macro-economic data showed on Monday.

Manufacturers seeking to cut costs and improve efficiency further reduced staff numbers in June, straining their operating capacity and leading to an increase in work backlogs, the survey showed. A PMI reading above 50 suggests improvement in business conditions, while a score below that signals deterioration. Supply-chain pressures remained evident, Markit noted, though weakening demand and the fall in the oil price saw output prices rise at the slowest rate since September. On the brighter side, recovery in foreign demand for Indian manufactured goods helped drive export orders to an eight-month high in June, after a contraction in May.

Meanwhile the Eurozone also released its latest unemployment figures this morning, with the data likely contributing to the single currency's weakness as the jobless rate held at 9.3%, disappointing investors, who had expected it to have fallen to 9.2%.

While US markets will be open, trade in many markets will be limited to a half session ahead of the Independence Day holiday, likely ensuring lower-than-usual trading activity.