German factory growth accelerates to near record-high in November - PMI

Share

"The PMI's gauge of new order volumes showed the recent expansion in sales accelerating in November, resulting in the largest monthly increase so far this year", Aw said.

Manufacturing production expanded at the fastest pace since September 2016 and to one of the greatest extents during the past four years.

The report indicated a solid overall improvement in Turkey's business conditions.

Rob Dobson of IHS Markit, which compiles the PMI survey, told media that manufacturing now seemed to be rising at a quarterly rate of 2 per cent "providing a real boost to the pace of broader economic expansion".

Companies that registered higher new work commented on greater client bases and the launch of new products.

Higher inflation - largely due to the fall in the pound after the Brexit vote last year - has pushed up costs for households and businesses this year, contributing to Britain's lagging economic performance compared with European peers.

More news: Biodiesel Vows To Work With Trump Admin To Correct RFS Levels

Meanwhile, business expectations about future output remained high, with the Future Output Index recovering from a record low in October to a three-month high as companies grew more confident about the outlook, Nikkei reported.

Manufacturing firms were able to cover at least a portion of these cost pressures by upping output prices, as they have for 18 successive months.

"The breadth of the rebound is also positive, with growth strengthening across the consumer, intermediate and investment goods industries". Of real note was a surge in demand for United Kingdom investment goods, such as plant and machinery, with new orders for these products rising to the greatest extent in over two decades. This suggests that capital spending, especially in the domestic market, is showing signs of renewed vigour.

The latest PMI report revealed an increase in inflationary pressures on the sector driven by exchange rates.

Rising costs were commonly associated with higher prices paid for imported raw materials, with demand for inputs exceeding supply.

Share