Published: Tue, February 04, 2020
Markets | By Otis Pena

Turkish factory activity expands for first time in 22 months: PMI

Turkish factory activity expands for first time in 22 months: PMI

South Korea's Purchasing Managers' Index (PMI), often viewed as a key barometer of global demand, fell to 49.8 from 50.1 in December.

January saw the headline IHS Markit/BME Germany manufacturing PMI - a single-figure snapshot of the performance of the manufacturing economy derived from indicators for new orders, output, employment, suppliers' delivery times and stocks of purchases - climb to an 11-month high of 45.3, from December's 43.7. "PMI results show that a notable rebound in demand boosted growth of sales, input buying, production and employment as firms focused on rebuilding their inventories and expanding their capacities in anticipation of further increases in new business", said Pollyanna de Lima, principal economist at IHS Markit.

Britain officially left the European Union at 11 p.m. (2300 GMT) Friday, putting an end to its 47-year-long membership of the world's largest trading bloc. It has remained below the 50 line separating growth from contraction since June. The sequence was the longest in almost seven years in the former and it was the longest in over 17 years in the latter.

Mr. Owen said it is important to note that the manufacturing sector was able to maintain its growth despite the eruption of Taal Volcano last month, which "notably affected" some businesses.

New export orders slipped back into contraction after three months of expansion, while production and total new orders slowed but remained in expansionary territory.

Apple & Levi's close stores in China amid the coronavirus
As of Tuesday , Foxconn told us it would still be operating on a holiday schedule and didn't anticipate any impact in production. Levi's has closed half of its stores, however China only accounts for three percent of its global market.

Owen said exports sales are rising reflecting the improving trade climate between China and the United States.

Asian manufacturing gauges stumbled last month, suggesting the US-China trade agreement failed to spur sentiment for an industry now bracing itself for supply-chain disruptions and a blow to demand from the spread of the coronavirus.

The additional workers hired by some firms in January was offset by some companies that did not replace workers that had resigned.

Meanwhile, business confidence of firms for the next 12 months has improved in the January report.

"The government is seeking to address this with their "Build, Build, Build" project to place greater investment in road infrastructure".

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