Operating conditions for manufacturing best in 5 years during December: Nikkei PMI
11:16, Jan 2, 2018
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The pickup in December's manufacturing PMI came on the back of strong demand both at home and overseas. Subsequently, firms raised their average selling prices at the fastest pace since February.
Growth in Australia's manufacturing sector moderated slightly in December, but continued its unbroken run of either expanding or stable conditions that began in October 2016.
The Investec Purchasing Managers' Index, which measures the health of the industry, rose to 59.1 in December, the strongest reading in the history of the series, up from 58.1 in November.
Commenting on the Indian Manufacturing PMI survey data, Aashna Dodhia, Economist at HIS Markit and author of the report, said, "India's goods-producing economy advanced on its recovery path, with operating conditions improving at the strongest pace since December 2012".
The manufacturing sector employed less people as the sub-index of employment dropped 0.3 percentage points month on month to 48.5 in December.
"The fall in the headline PMI was driven by a contraction in new orders".
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Companies continued to shrink their payrolls last month, despite stronger increases in demand and production, but the rate of job losses was the slowest in nine months.
Businesses would remain positive in terms of output over the next 12 months. This led to a steep increase in output, with production rising for a 17th month.
However, the sector continues to face some turbulence as delayed customer payments contributed to greater volumes of outstanding work.
The rate of input cost inflation ticked down from November.
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