Spain manufacturing sector posts more solid growth in December

Spain manufacturing sector posts more solid growth in December

Spain manufacturing sector posts more solid growth in December

Turkish manufacturing activity expanded in December for the 10th consecutive month as increases in rates of new orders, hiring and output all remained robust, a business survey showed on Tuesday.

The official Purchasing Managers' Index (PMI) released on Sunday dipped to 51.6 in December, down from 51.8 in November and in line with forecasts from economists in a Reuters poll.

A trend of synchronised global growth that became apparent over the course of previous year looked set to continue, with activity surveys in the euro zone and the United States later in the day expected to post strong readings.

Asia's factories ended a strong 2017 on a mixed note, with activity at multi-year highs in Taiwan and India and surprisingly picking up in China, but contracting in some places in a sign regional interest rate hikes likely will be gradual. This was consistent with the strongest improvement in the health of the sector since December 2012.

"Despite reports of subdued demand conditions, firms raised their payroll numbers to meet production requirements", it said.

Sub-indices for production and new orders came in at 54 and 53.4, respectively, down from 54.3 and 53.6 last month, while new export orders and import accelerated, with indices gained 1.1 points and 0.2 points to 51.9 and 51.2, respectively, according to NBS senior statistician Zhao Qinghe. Furthermore, the rate of growth quickened to the sharpest since October 2016.

Accordingly, Indian manufacturers upped their staffing levels at the end of the year.

The slowdown was reflected in the drop in buying activity in December, the sharpest decline since September.

The survey found that higher demand in the sector helped to lift factory output.

The uptrend was driven by stronger market demand from home and global markets, Dodhia added.

However, the sector continues to face some turbulence as delayed customer payments contributed to greater volumes of outstanding work.

The survey showed that average input costs continued to rise sharply despite the rate softening to a four-month low.

Moreover, as consumer spending recuperated, firms were restricted in their ability to pass on higher cost burdens to clients which further placed upward pressure on firms' margins.

Businesses would remain positive in terms of output over the next 12 months.

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