Markit Czech July manufacturing sentiment drops below forecast

Markit Czech July manufacturing sentiment drops below forecast

Markit Czech July manufacturing sentiment drops below forecast

The headline Nikkei Malaysia Manufacturing Purchasing Managers' Index (PMI) - a composite single-figure indicator of manufacturing performance - rose to 48.3 in July, indicating a slower rate of decline in the manufacturing sector compared to June's 46.9. Markit said that companies were discouraged by the lower demand during the introduction of the GST, which in turn affected factory output and ended six consecutive months of PMI growth.

China's economy remained stable and on a positive track despite a seasonal fluctuation in the country's manufacturing activity in July, official data showed Monday.

IHS Markit director Paul Smith said in a statement that the Malaysian manufacturing sector continued to struggle in the face of tepid demand particularly from the domestic economy in July.

"We should not read too much into the PMI's number as it's a sentiment survey index", Peck said in a telephone interview with The Edge Financial Daily.

The pick-up is unsustainable given the increasing headwinds from policy tightening, the economist noted.

"The only real blot on the copybook was a decrease in exports for the first time since last September", he said. As was the case for new business, the rate of expansion was the strongest seen since February.

China's manufacturing activity expanded at its fastest pace in four months in July on the back of economic stabilization, a private survey showed on Tuesday.

Despite robust production and orders, firms continued to adopt a relatively cautious approach to employment, with workforce numbers declining further. The rate of job creation was little-changed from that seen in June. IHS Markit's gauge of factory cost pressures fell for the sixth straight month to its lowest level since the Brexit vote.

In the second bi-monthly monetary policy review on June 6 and 7, the committee had left lending rates unchanged at 6.25 per cent while reducing the statutory liquidity ratio by 0.5 per cent.

Despite mixed signals, analysts are still generally optimistic about the outlook for China's exports, even if there is a slight dip in July. Separately on Tuesday, a YouGov/Cebr survey showed consumer confidence stabilised last month after hitting its lowest level since just after the Brexit vote.

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