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China’s factories post strongest growth in a decade as Covid-19 recovery continues – business live

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Rolling coverage of the latest economic and financial news, as China’s manufacturing expands at its fastest rate since January 2011

8.11am BST

India’s factories have returned to growth for the first time in five months, bolstering optimism this morning.

The upturn was led by an improvement in customer demand as client businesses reopened, after lockdown restrictions eased amid the coronavirus disease 2019 (COVID-19). Output and new orders expanded at the fastest paces since February. Meanwhile, job cuts continued into August, extending the current sequence of decline to five months.

India manufacturing PMI returns to expansion zone in August.

Read more: https://t.co/BkSjTHpnNM pic.twitter.com/TtPBGYl46s

8.02am BST

Over in South Korea, factory output continued to fall last month, but at a slower rate.

Related: South Korea re-imposes some coronavirus restrictions after spike in new cases

The latest Manufacturing PMI reading was the highest since February and pointed to only a modest deterioration in overall business conditions.

Subdued global economic conditions due to the COVID-19 pandemic continued to hold back customer spending in August, but there were a number of reports citing a boost to demand from the return to work among clients in the US and Europe

Manufacturers in South #Korea continued to signal an overall downturn in business conditions during August, according to #PMI data, but the rate of decline continued to ease in comparison to that seen through Q2. https://t.co/E7daRJOOre pic.twitter.com/XEaKMzra7c

7.52am BST

Although today’s PMI report is strong, there is one small cloud – China’s factory bosses are less optimistic than a month ago…..

Caixin says:

Although firms generally expect output to rise over the next year, the degree of optimism edged down to a three-month low in August.

While many companies anticipate global economic conditions to improve further, many expressed concerns over how long the pandemic would impact operations and customer demand.

7.48am BST

Reuters has further evidence that China’s manufacturing is strengthening:

A mirror factory in the Chinese city of Yiwu, which supplies to retail giants such as Walmart and Home Depot, has been inundated with new business beyond the factory’s current operating capacity, with the management sending the entire sales team down to factory floors, a 23-year-old salesman at the company told Reuters.

“We laid off workers when the pandemic first started but now, with this many orders, we cannot find enough people,” said the salesman, adding that the firm was having issues booking shipments as finished goods piled up at their warehouses.

7.36am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

“Overall, the post-epidemic economic recovery in the manufacturing sector continued. Supply and demand expanded with the pickup in overseas demand. Backlogs of work continued to increase. Both quantity of purchases and stocks of purchased items also grew. Companies’ future output expectations remained strong, reflecting a positive outlook for the manufacturing sector for the year ahead. Employment remained an important focus.

An expansion of employment relies on long-term improvement in the economy. Macroeconomic policy supports are essential, especially when there are still many uncertainties in domestic and overseas economies. Relevant policies should not be significantly tightened.”

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Continue reading…Rolling coverage of the latest economic and financial news, as China’s manufacturing expands at its fastest rate since January 2011Introduction: China’s manufacturing PMI jumped in AugustExport orders rise for first time this yearSigns of recovery in India and South KoreaCoronavirus – latest updatesSee all our coronavirus coverage 8.11am BSTIndia’s factories have returned to growth for the first time in five months, bolstering optimism this morning.The upturn was led by an improvement in customer demand as client businesses reopened, after lockdown restrictions eased amid the coronavirus disease 2019 (COVID-19). Output and new orders expanded at the fastest paces since February. Meanwhile, job cuts continued into August, extending the current sequence of decline to five months. India manufacturing PMI returns to expansion zone in August.Read more: https://t.co/BkSjTHpnNM pic.twitter.com/TtPBGYl46s 8.02am BSTOver in South Korea, factory output continued to fall last month, but at a slower rate. Related: South Korea re-imposes some coronavirus restrictions after spike in new cases The latest Manufacturing PMI reading was the highest since February and pointed to only a modest deterioration in overall business conditions. Subdued global economic conditions due to the COVID-19 pandemic continued to hold back customer spending in August, but there were a number of reports citing a boost to demand from the return to work among clients in the US and Europe Manufacturers in South #Korea continued to signal an overall downturn in business conditions during August, according to #PMI data, but the rate of decline continued to ease in comparison to that seen through Q2. https://t.co/E7daRJOOre pic.twitter.com/XEaKMzra7c 7.52am BSTAlthough today’s PMI report is strong, there is one small cloud – China’s factory bosses are less optimistic than a month ago…..Caixin says: Although firms generally expect output to rise over the next year, the degree of optimism edged down to a three-month low in August.While many companies anticipate global economic conditions to improve further, many expressed concerns over how long the pandemic would impact operations and customer demand. 7.48am BSTReuters has further evidence that China’s manufacturing is strengthening:A mirror factory in the Chinese city of Yiwu, which supplies to retail giants such as Walmart and Home Depot, has been inundated with new business beyond the factory’s current operating capacity, with the management sending the entire sales team down to factory floors, a 23-year-old salesman at the company told Reuters.“We laid off workers when the pandemic first started but now, with this many orders, we cannot find enough people,” said the salesman, adding that the firm was having issues booking shipments as finished goods piled up at their warehouses. 7.36am BSTGood morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.“Overall, the post-epidemic economic recovery in the manufacturing sector continued. Supply and demand expanded with the pickup in overseas demand. Backlogs of work continued to increase. Both quantity of purchases and stocks of purchased items also grew. Companies’ future output expectations remained strong, reflecting a positive outlook for the manufacturing sector for the year ahead. Employment remained an important focus.An expansion of employment relies on long-term improvement in the economy. Macroeconomic policy supports are essential, especially when there are still many uncertainties in domestic and overseas economies. Relevant policies should not be significantly tightened.” European Opening Calls:#FTSE 5950 -0.24%#DAX 13016 +0.54%#CAC 4969 +0.45%#AEX 552 +0.49%#MIB 19739 +0.53%#IBEX 7023 +0.76%#OMX 1775 +0.48%#STOXX 3292 +0.58%#IGOpeningCallFTSE back from holiday. Continue reading…