Manufacturing PMI (purchasing managers' data)
published today for India, South Korea, Indonesia and Taiwan, shows rises in all
India: October data indicated falling levels of production and new orders in the Indian manufacturing economy, as the business climate within India remained tough. However, there was some positive news on the export front as foreign orders grew for the first time since July. Unchanged from September’s 49.6, the seasonally adjusted HSBC (PMI) indicated a third, albeit marginal, successive deterioration of business conditions across India.
Reflective of a sustained reduction in order books, Indian manufacturers lowered their production volumes in October. Although modest, the pace of decline accelerated from September. Incoming new work also fell at a faster rate, with survey participants commenting on weaker demand and a difficult economic climate. Some firms indicated that the cyclone Phailin had also led to fewer numbers of new orders placed.
The survey report said export business expanded for the first time in three months during October. Anecdotal evidence suggested that the weaker rupee had boosted foreign demand in the latest month. The overall pace of growth was, however, moderate and weaker than the series average.
South Korea: The HSBC South Korea PMI rose above the 50.0 no-change
mark in October, following a four-month sequence of negative readings signalling deteriorating conditions in the South Korean manufacturing industry. The PMI rose to 50.2, a small improvement from September’s reading of 49.7, indicating that operating conditions had broadly stabilised.
Modest growth in output and new orders was aided by a solid expansion in export demand. These positive signals were offset to a degree by a slight decline in payroll numbers and a further reduction in backlogs of work.
South Korean manufacturing output grew in October, following a four-month sequence of contraction. Panellists commonly attributed increases in production to improvements in domestic economic conditions and expansions in demand from export markets such as the Middle East and Hong Kong.
Indonesia: The Indonesian manufacturing economy gained momentum in October, with the PMI rising to its highest level in four months. Production growth accelerated to the fastest since April, driven by a rebound in new work. October’s HSBC Indonesia PMI rose from 50.2 in September to 50.9, highlighting a moderate improvement in operating conditions across Indonesia. The upturn in the headline index reflected positive contributions from two major sub-components, namely output and new orders.
Manufacturing production rose for the second month running, amid evidence of new order growth. The rise in output was moderate, but the joint-fastest (on par with April) in the year-to-date. Nevertheless, the growth rate was fractionally weaker than the average over the second half of 2012.
Stronger domestic demand and the launch of new product lines both resulted in higher levels of new orders placed at Indonesian manufacturers during October. The rise in incoming new work was slight, although the first in four months. Foreign demand, however, remained weak and export orders fell for the fifth consecutive month. Furthermore, the rate of contraction was the most pronounced since July 2012.
Despite the upturn in new business inflows, Indonesian manufacturers continued to reduce their workforce numbers in October.
Taiwan: Operating conditions in Taiwan’s manufacturing sector improved
for the second successive month in October. Moreover, the rate of improvement
quickened from the previous month to the strongest since March 2012. Growth of
output and new orders rose solidly during October, amid reports of strengthened
client demand at both home and abroad. Greater volumes of new business led to
the fastest accumulation of work-in-hand since April 2012, while firms continued
to expand workforce numbers in an effort to raise productive capacity.
The PMI posted at 53.0 in October, up from 52.0 in September, and signalled a
solid improvement of business conditions in Taiwan’s manufacturing sector.
Furthermore, it was the quickest rate of improvement in over a year-and-a-half.
Output levels and new orders rose solidly at Taiwanese manufacturers during
October. Moreover, it was the quickest expansions of both production and new
work since March 2012. New order growth was linked by panellists to stronger
client demand, in both domestic and international markets, with new export
orders also rising at a solid pace. Anecdotal evidence mentioned higher demand
in Europe and the US in particular
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