Latest news with #AndrewHarker
Asharq Al-Awsat
02-06-2025
- Business
- Asharq Al-Awsat
Turkish Manufacturing Sector Contracts in May as Demand Weakens
Türkiye's manufacturing sector continued to contract in May, with firms scaling back production, employment, and purchasing activity amid muted demand conditions, a survey showed on Monday. The Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Managers' Index (PMI) fell slightly to 47.2 in May from 47.3 in April, marking the 14th consecutive month of moderation in the sector. A PMI reading below 50 indicates a contraction in activity. New orders declined, reflecting a persistently softening demand environment, and contributed to the most marked slowdown in manufacturing production since last October, the survey said. Employment and purchasing activity were also scaled back, while manufacturers reduced their inventories of both purchases and finished goods, the survey also showed. Input costs continued to rise sharply, but the pace of inflation eased from the one-year high seen in April, the survey said, while output price inflation also softened, reaching its lowest level in 2025 so far. "Firms will be hoping that growth can be kick-started in the near future. There were at least some signs of inflationary pressures easing over the month which could provide some respite for manufacturers," said Andrew Harker, Economics Director at S&P Global Market Intelligence.
Fibre2Fashion
06-05-2025
- Business
- Fibre2Fashion
Vietnam PMI falls to 45.6 in April amid US tariff impact
Vietnam's manufacturing sector suffered a renewed downturn in April 2025, as fresh US tariffs triggered sharp declines in output, new orders, employment, and purchasing activity, according to S&P Global. The Vietnam Manufacturing PMI fell to 45.6 from 50.5 in March, indicating the steepest contraction since May 2023. The imposition of US tariffs and global market uncertainties led to the fastest drop in new orders in nearly two years, while export demand fell for the sixth consecutive month. Business confidence hit a 44-month low, with manufacturers deeply concerned about the impact of tariffs on future output, S&P Global said in a press release. "The imposition of tariffs by the US knocked the Vietnamese manufacturing sector into contraction during April, with firms seeing marked reductions in new orders, exports and production. What's more, the potential for further disruption to the sector as a result of additional tariffs meant that business confidence slumped and was one of the lowest on record. In what is a fluid situation, it will be important to keep tracking the S&P Global PMI data for Vietnam over the coming months to see how business conditions evolve,' Andrew Harker, economics director at S&P Global Market Intelligence, said. Employment levels fell for the seventh month in a row, with April marking the sharpest job cuts since late 2021. Purchasing activity and inventory levels also slumped, and although input costs edged up slightly, firms continued to cut selling prices—now down for the fourth straight month. Vietnam's manufacturing sector contracted sharply in April 2025 as new US tariffs drove steep declines in output, orders, exports, and jobs. The PMI fell to 45.6, the lowest since May 2023. Business confidence hit a 44-month low, while employment and purchasing fell. Despite rising input costs, firms cut prices for a fourth month, signalling continued pressure ahead. Fibre2Fashion News Desk (HU)
Arab News
06-04-2025
- Business
- Arab News
Kuwait business activity strengthens, UAE sees slight dip in non-oil growth: S&P Global
RIYADH: Kuwait's non-oil private sector continued to gain traction in March, with business conditions improving at a faster pace, while growth in the UAE's non-energy economy moderated slightly, an economy tracker showed. According to the latest S&P Global Purchasing Managers' Index surveys, Kuwait's PMI rose to 52.3 in March from 51.6 a month earlier, signaling a solid monthly improvement in business activity driven by stronger demand, higher output, and a rebound in hiring. In contrast, the UAE's PMI slipped to 54 from 55 in February, indicating softer — though still robust — growth across its non-oil economy. Any PMI reading above 50 signifies an expansion, while a reading below 50 indicates contraction, according to S&P. The growth of Kuwait's non-oil business sector reflects a broader trend across the Middle East, where countries including Saudi Arabia are actively pursuing economic diversification to reduce their reliance on crude revenues. Kuwait's non-oil private sector saw a sharper rise in output and new orders in March, while employment returned to growth after a dip in the previous month. 'The latest reading pointed to a solid monthly improvement in the health of the non-oil private sector, and one that was more pronounced than in the previous month,' said S&P Global. The report noted a significant uptick in purchasing activity in Kuwait, driven by stronger demand, new product offerings, and competitive pricing. New export orders also rose, marking the fastest pace so far this year. Surveyed firms said discounting was the main factor supporting the growth in business activity. 'The tried and tested formula of keeping prices low paid off for firms in Kuwait again in March. Although output prices rose, the pace of inflation was only marginal and clients responded accordingly by committing to new orders,' said Andrew Harker, economics director at S&P Global Market Intelligence. 'In fact, both new orders and output rose more quickly than in February,' he added. Although companies raised their selling prices in March after a reduction in the previous month, the rate of inflation remained marginal as firms continued to price competitively to attract customers. S&P Global also noted that staff costs were unchanged in the third month of 2025, following a slight decline in February. 'There were some reports of firms making conscious efforts to try to keep on top of workloads, with employment and inventories raised accordingly,' said Harker, adding: 'But given the strength of new order growth, more capacity will likely be needed to try to prevent the sustained accumulation in backlogs of work continuing.' Looking ahead, non-oil companies in Kuwait expressed increased optimism, with business confidence reaching a three-month high in March. Over 34 percent of survey respondents expected activity to grow, citing the impact of new marketing strategies and the availability of quality products at competitive prices. UAE growth eases While the UAE continued to register strong non-oil growth, March marked the third consecutive monthly dip in PMI, with the headline reading falling to its lowest since September 2023. S&P Global attributed the slowdown to milder demand growth and lingering capacity constraints. 'The UAE PMI signaled another month of robust growth in the non-oil economy in March, although there were some signs that momentum may be slowing. A third consecutive month-on-month softening of new order growth shows that some firms could be encountering challenges in meeting their sales targets,' said David Owen, senior economist at S&P Global Market Intelligence. The UAE's PMI had reached a nine-month high of 55.4 in December. The latest figure marks its lowest level since September. Survey respondents reported gaining new customers in March, supported by improved demand conditions. However, strong competition and only modest growth in new export orders meant the upturn in sales was the weakest since October. 'The quest to overcome capacity hurdles ramped up in March, as firms purchased inputs in bulk to try and clear their backlogs. The surge in purchasing activity reached its fastest pace since mid-2019, while a decrease in inventories indicated that these new inputs were quickly integrated into operations,' said Owen. He added that some non-oil firms in the UAE are still grappling with backlogs due to widespread delays in customer payments. S&P Global noted that while business activity in the country's non-oil private sector rose sharply in March, it was still at the slowest pace in four months. Around 27 percent of surveyed firms reported increased activity during the month, while 8 percent saw a decline. Employment growth remained subdued, marking its weakest pace in nearly three years, with most firms keeping staff numbers unchanged. 'Given the elevated demand levels, this suggests that some firms could be struggling to locate suitable candidates,' said Owen. The report also noted that Dubai's non-oil business conditions improved at a softer rate for the third consecutive month in March. Dubai's PMI dropped to a five-month low of 53.2, down from 54.3 in February and below the overall UAE reading of 54.
Gulf Today
03-04-2025
- Business
- Gulf Today
Turkish annual inflation slows to 38.1% in March, below forecasts
Turkish annual consumer price inflation slowed to 38.1 per cent in March, official data showed on Thursday, lower than a Reuters poll forecast and extending its fall from a peak of around 75 per cent last May. Turkey's inflation sustained its downward trend last month despite a sell-off of Turkish assets following the detention of Istanbul Mayor Ekrem Imamoglu. His arrest provoked the largest anti-government protests in a decade and sent the lira currency tumbling to a record low. Month-on-month, inflation was 2.46 per cent, according to the Turkish Statistical Institute, also below forecasts. In February, inflation stood at 2.27 per cent on a monthly basis and 39.05 per cent annually. Annual inflation in the key food and non-alcoholic drinks sector was slightly lower than the headline rate, at 37.12 per cent. Price hikes were led by a 80.42 per cent rise in education prices, followed by a 68.63 per cent increase in housing prices. In a Reuters poll, monthly inflation rate is seen edging up to 3 per cent in March, with the annual rate seen falling to 38.9 per cent. Based on the median forecast of nine poll respondents, year-end inflation is seen at 29.75 per cent, up one percentage point from the previous poll, due to fallout from the market volatility last week in which Turkish assets fell. The domestic producer price index rose 1.88 per cent month-on-month (m-o-m) in March for an annual rise of 23.5 per cent, the data showed. Meanwhile Turkey's manufacturing sector contracted further in March, with output and new orders continuing to ease amid difficult market conditions both domestically and internationally, a survey showed on Wednesday. The Purchasing Managers' Index (PMI) slipped to 47.3 from 48.3 in February, marking the lowest reading since October last year, survey compilers S&P Global reported. A PMI reading below 50 indicates a contraction in activity. March marked the 21st consecutive month of declining new orders, with the slowdown being the most pronounced since last October. New export orders fell at the fastest pace since November 2022. 'Challenging market conditions both at home and abroad meant for further moderations in output and new orders in March as Turkish firms struggled to secure business,' said Andrew Harker, Economics Director at S&P Global Market Intelligence. Despite the downturn, there were signs of stabilisation in some areas. Inventory levels held steady after 10 months of depletion, and suppliers' delivery times improved for the first time in six months, reflecting reduced demand for inputs. Inflationary pressures eased slightly although currency weakness continued to drive up costs. Employment in the sector also saw a slight reduction for the fourth consecutive month, though the decrease was the smallest so far this year. Manufacturers remain cautiously optimistic about future output, hoping for improvements in new orders and demand from the construction sector over the coming year. Meanwhile Turkey's central bank said it would take additional actions if necessary to ensure the smooth functioning of financial markets, as it assesses risks to inflation from recent market developments. The detention of Istanbul mayor Ekrem Imamoglu, President Tayyip Erdogan's main political rival, which sparked biggest protests in Turkey in more than a decade, had caused strong market volatility and a major market sell-off. The Monetary Policy Committee (MPC) held an interim meeting to review financial market conditions last week and has implemented measures to support its tight monetary stance, the bank said in a statement. The bank suspended one-week repo auctions and hiked its overnight lending rate to 46 per cent in the interim meeting. In a research note, Goldman Sachs said it expected the central bank to raise its policy rate by 350 basis points 'to show its ability and willingness to implement its disinflation program'. The moves last week effectively raised its average cost of funding by 350 basis points, the Wall Street bank said, and allowed for more time for internal discussion with other stakeholders prior to raising the main repo rate. Turkish Finance Minister Mehmet Simsek and Central Bank Governor Fatih Karahan told international investors that they would do whatever was needed to tame market turmoil. On Monday, Istanbul stocks rebounded nearly 3 per cent while the lira held steady against the dollar. The Borsa Istanbul benchmark index ended last week down 16.6 per cent, its worst drop since the global financial crisis in October 2008. The Treasury, central bank, the BDDK banking watchdog and capital markets board held a series of meetings with market actors over the weekend and announced several steps.
Asharq Al-Awsat
02-04-2025
- Business
- Asharq Al-Awsat
Turkish Manufacturing Sector Contracts Further in March, PMI Shows
Türkiye's manufacturing sector contracted further in March, with output and new orders continuing to ease amid difficult market conditions both domestically and internationally, a survey showed on Wednesday. The Purchasing Managers' Index (PMI) slipped to 47.3 from 48.3 in February, marking the lowest reading since October last year, survey compilers S&P Global reported. A PMI reading below 50 indicates a contraction in activity, Reuters reported. March marked the 21st consecutive month of declining new orders, with the slowdown being the most pronounced since last October. New export orders fell at the fastest pace since November 2022. "Challenging market conditions both at home and abroad meant for further moderations in output and new orders in March as Turkish firms struggled to secure business," said Andrew Harker, Economics Director at S&P Global Market Intelligence. Despite the downturn, there were signs of stabilization in some areas. Inventory levels held steady after 10 months of depletion, and suppliers' delivery times improved for the first time in six months, reflecting reduced demand for inputs. Inflationary pressures eased slightly although currency weakness continued to drive up costs. Employment in the sector also saw a slight reduction for the fourth consecutive month, though the decrease was the smallest so far this year. Manufacturers remain cautiously optimistic about future output, hoping for improvements in new orders and demand from the construction sector over the coming year.
