Strong Canadian manufacturing growth maintained in March

Strong Canadian manufacturing growth maintained in March

Strong Canadian manufacturing growth maintained in March

With global tensions high over trade issues, politics and tariffs, manufacturing has faced challenging times in the first quarter of the year.

Shaking off concerns that heavy snowfall from the "beast from the east" would trigger a slowdown, the United Kingdom manufacturing sector maintained a steady pace of growth in March.

The headline IHS Markit/BME Germany Manufacturing PMI - a single-figure snapshot of the performance of the manufacturing economy - registered a reading of 58.2 in March, down from 60.6 in February.

Growth in manufacturing activity in the country slowed to a five-month low in March, recording the smallest improvement in operating conditions since last October.

The electronics sector's higher PMI reading was led by a faster expansion in factory output, inventory, new orders and new exports. Higher production was mainly linked to new order growth and favorable demand conditions.

"The key question is whether growth can now be sustained, albeit at a lower level, into the coming months", Dobson said.

Tuesday's PMI showed growth in cost pressures for factories and their selling prices cooled in March, something that may reassure Bank of England officials who are keeping an eye on inflation pressures.

In a wrap, the IHS Market data showed that output and new orders continued to increase markedly in March, while input costs rose to the highest levels going back to November 2012.

Commenting on the China General Manufacturing PMI™ data, Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said "The Caixin China General Manufacturing PMI fell to 51.0 in March".

In the unweighted model of our choice (the ISM's), respondents are asked whether output, employment, new orders, suppliers' delivery times and stocks of purchases have improved on the previous month, are unchanged or have declined.

Lee expects the manufacturing sector to continue growing but at a slower pace in the second half of 2018 (2H18) partly due to the potential trade war between the U.S. and China which could impact Malaysia's manufacturing sector, especially for export-oriented players.

The pound has gained more than 4 percent against the USA dollar since the end of 2017.

"Indeed, amid a slower expected pace of recovery in consumer spending, IHS Markit marginally downgraded its real gross domestic product (GDP) forecast to 7.3% for 2017-2018 fiscal", said Dodhia.

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