Mumbai-India's manufacturing sector grew at a slower pace in March 2018, the Nikkei India Manufacturing Purchasing Managers' Index (PMI) showed on Tuesday. Monday's headline number was below the Investing.com forecast of 55.7.
A higher rating means that it is expected to improve, while a PMI rating below 50 indicates that many think it will deteriorate. "However, the fact that business optimism about the coming year has slipped to a 15-month low suggests there are other factors that are now hitting factory order books". A reading above 50 shows growth in the sector. This is clear from the PMI index quoted by Reuters. "The growth momentum of the Chinese manufacturing economy may have weakened in March, but at a marginal pace". Businesses responded to higher demand by increasing staff. March data also showed that cost burdens continued to rise as unfavourable exchange rates pushed up raw materials prices.
"The latest PMI survey provided further evidence that United Kingdom manufacturing has entered a softer growth phase so far this year", said Rob Dobson, director at data company IHS Markit. Though new export orders rose during March, Dodhia said, "On a negative note, further advances in trade disputes could potentially weigh on sales to global clients". The main issue with the manufacturing stats has been that new orders growth has been around a 9-month low, potentially reflecting a constricting effect from Brexit-based uncertainties. The peso's depreciation against the US dollar didn't help matters either.
Goods manufacturers raised their output for the eighth successive month during March.More news: No. 1 Villanova vs. No. 3 Michigan: Predicting the 2018 National Champion
Output rose for the 14th straight month in the face of "stronger underlying demand".
France saw unseasonably cold weather as well as snow in March, and the euro has been trading around a three-year high since the start of the year, which makes French goods more expensive to buyers from outside the euro zone. There was some pressure on supply chains as average lead times continued to lengthen during March (the third month in a row).
"In the case that inflationary pressures ease, improvements in consumer spending power are expected to boost overall consumption", IHS Markit principal economist Pollyanna De Lima said.