Published: Thu, August 03, 2017
Business | By Max Garcia

Hong Kong PMI rises to 51.3 in July

Hong Kong PMI rises to 51.3 in July

Both output and new orders fell for the first time since January and at the fastest rates for almost four years.

The UK's factories enjoyed a welcome bounce-back in July thanks to the strongest surge in export orders for more than seven years.

The Nikkei India Services PMI Business Activity Index plunged to 45.9 in July, its lowest level since September 2013. Weaker contributions from the cyclically sensitive areas of construction activity more than offset resilience in the civil engineering sector.

The result mirrored that in the separate Nikkei-IHS Markit India manufacturing PMI which fell to 47.9, down from 50.9 in June. A small number trimmed prices for the first time this year. "There were signs that the accelerated pace of new order growth was driven by domestic spending, as the latest increase in export sales was weaker than in June", it said.

The PMI for India's dominant service industry dropped to a near four-year low of 45.9 in July from 53.1. Rates of job shedding were, however, slight in both cases. Delayed payments from clients was cited as the main reason leading to higher backlogs. Goods producers are sustaining progress that has been building since 2015.

Services PMI had declined in four of the previous five months.

It down from 54.8 in June and well below the 54.5 reading that City of London analysts had expected.

On the price front, input price inflation faced by service providers softened from last month, while output charges rose at the sharpest rate in nearly four-and-a-half years during July.

Indian service providers, however, remain optimistic about the 12-month outlook. Indeed, the degree of optimism reached an 11-month high. The downturn in services follows similar weakness in manufacturing, to make a double-whammy of disappointing news at the start of the second quarter of the 2017/2018 financial year.

"Whereas many will question how deep an impact the GST will have on the economy in the near- and long-term, firms seem convinced that prospects will brighten as the new tax regime becomes clearer".

Growth in Britain's construction sector slumped to its lowest level since the immediate aftermath of the Brexit referendum in July, the latest PMI survey from IHS Markit and CIPS showed.

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