Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

Breaking: September Manufacturing Pmi Falls To Lowest Since November

Recommended Posts

http://uk.finance.yahoo.com/news/september-manufacturing-pmi-falls-to-lowest-since-november-reuters_molt-80d9a428b1b1.html?x=0

September manufacturing PMI falls to lowest since November
Fiona Shaikh, 10:30, Friday 1 October 2010
LONDON (
Reuters
) - Activity in the manufacturing sector weakened more than expected in September to grow at its slowest pace in 10 months, as export orders fell for the first time in more than a year, a survey showed on Friday.
The Markit/Chartered Institute of Purchasing and Supply manufacturing PMI index fell to 53.4 in September from a downwardly revised 53.7 in August. That was the lowest since November 2009 and below forecasts for a reading of 53.8.
The figures are likely to reinforce concerns that Britain's recovery is losing steam after strong growth in the second quarter, and could lend weight to Bank of England policymaker Adam Posen's view the Bank should inject more stimulus...../
Foreign demand for British goods has not been as strong as experts thought it would be even though sterling has lost around a quarter of its value against other currencies since 2007.
And the prospect of a pick-up in exports is looking increasingly uncertain as Britain's key trading partners face muted growth and fiscal austerity measures.
That, together with sharp cuts in government spending, mean the UK's surprisingly robust 1.2 percent growth between April and June could turn out to be the peak for now.

So what is it today? Double dip back on and Posen's position justified?

Schizo market as the headless chicken continues its manic dash around the coup.

IMO, the double dip has always been on.

Edited by Realistbear

Share this post


Link to post
Share on other sites

If we can't produce things then there's only one thing to be done: we must borrow more from abroad so we can sell each other more houses at higher prices.

Share this post


Link to post
Share on other sites

http://uk.finance.yahoo.com/news/soft-factory-pmi-hints-at-growth-slowdown-reuters_molt-759abb68b023.html?x=0

"Today's survey adds to other evidence suggesting that the
economic recovery is fading fast
," said Vicky Redwood at Capital Economics. And signs price pressures are easing and that firms still have spare production capacity should provide reassurance the BoE can leave interest rates at their record low of 0.5 percent for longer without stoking inflation.
"This makes it a stone-dead certainty that the BoE will keep interest rates down at 0.5 percent at the conclusion of its October Monetary Policy Committee next Thursday," said Howard Archer, economist at IHS Global Insight.
"It also maintains pressure on the Bank to consider reviving quantitative easing, although we expect them to hold fire for the time being at least."

AS the outlook darkens that will be a buy signal for the FTSE then as low interest rates will compensate fofr the collapse in manufacturing and export "growth." Should be a good boost for Sterling though as it means the recovery is going to reverse and we will have to resort to Posen's plan after all. Hang on................................

Share this post


Link to post
Share on other sites

The PMI is STILL above 50 (lesser than this means contraction) so it currently indicates a bumbling along the bottom not a fresh dip. That's not to say that I don’t think the double dip is not on, just an observation.

FWIW: I don't really think we ever came out of recession - just government pumped up GDP falsely and irresponsibly

http://uk.finance.yahoo.com/news/september-manufacturing-pmi-falls-to-lowest-since-november-reuters_molt-80d9a428b1b1.html?x=0

September manufacturing PMI falls to lowest since November
Fiona Shaikh, 10:30, Friday 1 October 2010
LONDON (
Reuters
) - Activity in the manufacturing sector weakened more than expected in September to grow at its slowest pace in 10 months, as export orders fell for the first time in more than a year, a survey showed on Friday.
The Markit/Chartered Institute of Purchasing and Supply manufacturing PMI index fell to 53.4 in September from a downwardly revised 53.7 in August. That was the lowest since November 2009 and below forecasts for a reading of 53.8.
The figures are likely to reinforce concerns that Britain's recovery is losing steam after strong growth in the second quarter, and could lend weight to Bank of England policymaker Adam Posen's view the Bank should inject more stimulus...../
Foreign demand for British goods has not been as strong as experts thought it would be even though sterling has lost around a quarter of its value against other currencies since 2007.
And the prospect of a pick-up in exports is looking increasingly uncertain as Britain's key trading partners face muted growth and fiscal austerity measures.
That, together with sharp cuts in government spending, mean the UK's surprisingly robust 1.2 percent growth between April and June could turn out to be the peak for now.

So what is it today? Double dip back on and Posen's position justified?

Schizo market as the headless chicken continues its manic dash around the coup.

IMO, the double dip has always been on.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.