Published: Sat, September 02, 2017
Economy | By Melissa Porter

China factory activity picks up in Aug

China factory activity picks up in Aug

Britain's manufacturers saw growth surge in August as new orders from both the US and Europe flooded into the country and supported the sector, according to the latest PMI reading from IHS Markit.

"A reading above 50 indicates expansion, while a score below this mark means contraction".

Britain's manufacturers stepped up production at the fastest pace in seven months in August, taking on more workers to keep up with strong demand from home and overseas.

China reported Thursday that its official manufacturing Purchasing Managers' Index for the month of August came in above expectations at 51.7 due to strong production and domestic demand.

Pollyanna De Lima, Principal Economist at IHS Markit and author of the report, said, "August's PMI results showed that manufacturers in India recovered quickly from the sharp slump that followed the introduction of the goods & services tax".

A PMI of 56.9 represented the second-highest level of activity in the industry in three years, and rose from 55.3 in July.

It said survey data had also revealed a fractional rise in employment in August, following a moderate contraction the previous month.

Group's Australian Performance of Manufacturing Index (PMI) jumped by 3.8 points to 59.8 last month, marking an eleventh consecutive month of growth. Over half of companies expect output to be even higher in a year's time, compared to less than 7% that forecast a decline. While overall economic growth slowed in the first half as consumer spending stalled, some Bank of England policy makers are calling for an interest-rate increase to keep a lid on above-target inflation. Both input costs and output prices rose further, with the latter hitting an eight month high, according to Zhong. August´s 56.9 is the second highest manufacturing PMI reported for the United Kingdom in over three years.

Supply shortages put upward pressure on prices and there were further reports of capacity constraints.

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