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Fibre2Fashion
6 days ago
- Business
- Fibre2Fashion
Eurozone manufacturing grows for third straight month: S&P Global
The euro area manufacturing sector recorded its third consecutive month of output growth in May, reflecting stabilising demand and easing contraction trends, according to the latest HCOB PMI survey by S&P Global. The PMI rose to 49.4 from 49.0 in April, the highest since August 2022, edging closer to the 50.0 no-change mark. 'With output rising for three months in a row, historical patterns suggest there is a 72 per cent chance we will see another increase in the next month. Of course, one big risk on the horizon is the possibility of the US significantly hiking tariffs on EU imports. That could definitely cast a shadow over the outlook,' Dr Cyrus de la Rubia, chief economist at Hamburg Commercial Bank (HCOB), said commenting on the PMI data. Eurozone manufacturing grew for a third month in May, with the PMI rising to 49.4. Greece led, while Spain returned to expansion. France nearly stabilised; Germany remained weakest. Demand steadied, export orders improved, and business confidence hit a 27-month high. Input costs fell, aiding ECB rate cut prospects, says HCOB's de la Rubia. Notably, Greece led performance among monitored countries, with Spain returning to expansion after months of decline. France's manufacturing activity nearly stabilised, reaching a 28-month high, while Germany remained weakest, though its downturn softened. Demand conditions improved, with export orders nearing stability and backlogs of work declining at their slowest rate since June 2022. 'In May, Europe's industrial engines seemed to be running in sync. Production rose in Germany, France, Italy, and Spain, suggesting that shared factors are driving the upswing. Among them is the US tariffs, which likely prompted US buyers to place orders early. That said, France has not benefited from this trend as much as its peers,' Rubia added. Purchasing activity, employment cuts, and inventory reductions were all moderated. Input costs dropped for the second straight month, at the fastest pace in over a year, prompting some firms to lower output prices. Business confidence strengthened significantly, reaching its highest level since February 2022 and surpassing the historical average. 'The ECB is getting some tailwinds for its expected interest rate cuts. The industrial sector has started cutting its sales prices again after two months of increases, giving the central bank some extra room to move on with its interest rate cuts. Lower energy prices, which have helped bring down input costs, are likely the main driver behind this shift,' Rubia said. Fibre2Fashion News Desk (HU)
Yahoo
02-05-2025
- Business
- Yahoo
Euro zone manufacturing showed more signs of stabilisation in April
LONDON (Reuters) -Euro zone manufacturing output grew at the fastest pace in just over three years in April despite overall factory activity remaining in contraction territory, with the big three economies showing signs of improvement, a survey showed on Friday. HCOB's euro zone final headline manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 49.0 in April from 48.6 in March, marking its highest level in 32 months but remaining below the 50 mark separating growth from contraction. "A fourth consecutive increase in the HCOB PMI can be seen as a sign that the situation in the manufacturing sector is stabilising. This comes as a surprise given the many uncertainties and shocks of recent months," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. The output sub-index climbed to 51.5 from March's 50.5, its highest since March 2022, indicating a second consecutive month of production growth despite weak demand. New orders continued to fall but at their slowest pace in three years, nearly stabilising with the sub-index approaching the neutral 50 threshold at 49.5. Export markets remained the primary weakness, with overseas orders declining more sharply than overall new business. Germany, France and Italy - the bloc's largest economies - all showed improvements, though their PMIs remained in contraction territory. Greece topped the table with a reading of 53.2, followed by Ireland at 53.0, while Austria languished at the bottom with 46.6. "The near stabilisation of the industrial economy was helped by a production pick-up in both Germany and France in April, and Italy is fighting its way back into expansion territory," de la Rubia added. Factory employment fell for the 23rd consecutive month, although the rate of job shedding was the slowest since June. Manufacturers managed to increase their profit margins as input costs declined for the first time since November while output prices rose at their fastest rate in two years. The survey showed business confidence weakened to its lowest level in 2025 so far, signaling persistent caution among factory operators despite improving production trends. A composite PMI, which includes the larger services sector and will be released next week, is expected to provide a more complete picture of the euro zone economy's health. Sign in to access your portfolio
Reuters
02-05-2025
- Business
- Reuters
Euro zone manufacturing showed more signs of stabilisation in April
LONDON, May 2 (Reuters) - Euro zone manufacturing output grew at the fastest pace in just over three years in April despite overall factory activity remaining in contraction territory, with the big three economies showing signs of improvement, a survey showed on Friday. HCOB's euro zone final headline manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 49.0 in April from 48.6 in March, marking its highest level in 32 months but remaining below the 50 mark separating growth from contraction. "A fourth consecutive increase in the HCOB PMI can be seen as a sign that the situation in the manufacturing sector is stabilising. This comes as a surprise given the many uncertainties and shocks of recent months," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. The output sub-index climbed to 51.5 from March's 50.5, its highest since March 2022, indicating a second consecutive month of production growth despite weak demand. New orders continued to fall but at their slowest pace in three years, nearly stabilising with the sub-index approaching the neutral 50 threshold at 49.5. Export markets remained the primary weakness, with overseas orders declining more sharply than overall new business. Germany, France and Italy - the bloc's largest economies - all showed improvements, though their PMIs remained in contraction territory. Greece topped the table with a reading of 53.2, followed by Ireland at 53.0, while Austria languished at the bottom with 46.6. "The near stabilisation of the industrial economy was helped by a production pick-up in both Germany and France in April, and Italy is fighting its way back into expansion territory," de la Rubia added. Factory employment fell for the 23rd consecutive month, although the rate of job shedding was the slowest since June. Manufacturers managed to increase their profit margins as input costs declined for the first time since November while output prices rose at their fastest rate in two years. The survey showed business confidence weakened to its lowest level in 2025 so far, signaling persistent caution among factory operators despite improving production trends. A composite PMI, which includes the larger services sector and will be released next week, is expected to provide a more complete picture of the euro zone economy's health.
Business Times
02-05-2025
- Business
- Business Times
Eurozone manufacturing showed more signs of stabilisation in April
[LONDON] Eurozone manufacturing output grew at the fastest pace in just over three years in April despite overall factory activity remaining in contraction territory, with the big three economies showing signs of improvement, a survey showed on Friday (May 2). HCOB's eurozone final headline manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 49 in April from 48.6 in March, marking its highest level in 32 months but remaining below the 50 mark separating growth from contraction. 'A fourth consecutive increase in the HCOB PMI can be seen as a sign that the situation in the manufacturing sector is stabilising. This comes as a surprise given the many uncertainties and shocks of recent months,' said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. The output sub-index climbed to 51.5 from March's 50.5, its highest since March 2022, indicating a second consecutive month of production growth despite weak demand. New orders continued to fall but at their slowest pace in three years, nearly stabilising with the sub-index approaching the neutral 50 threshold at 49.5. Export markets remained the primary weakness, with overseas orders declining more sharply than overall new business. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Germany, France and Italy – the bloc's largest economies – all showed improvements, though their PMIs remained in contraction territory. Greece topped the table with a reading of 53.2, followed by Ireland at 53, while Austria languished at the bottom with 46.6. 'The near stabilisation of the industrial economy was helped by a production pick-up in both Germany and France in April, and Italy is fighting its way back into expansion territory,' de la Rubia added. Factory employment fell for the 23rd consecutive month, although the rate of job shedding was the slowest since June. Manufacturers managed to increase their profit margins as input costs declined for the first time since November while output prices rose at their fastest rate in two years. The survey showed business confidence weakened to its lowest level in 2025 so far, signalling persistent caution among factory operators despite improving production trends. A composite PMI, which includes the larger services sector and will be released next week, is expected to provide a more complete picture of the eurozone economy's health. REUTERS
The Guardian
23-04-2025
- Business
- The Guardian
UK annual borrowing nearly £15bn above official forecast; stocks rise as Trump rows back on Fed attack
Show key events only Please turn on JavaScript to use this feature Show key events only Please turn on JavaScript to use this feature Good morning, and welcome to our rolling coverage of business, the financial markets, and the world economy. Government borrowing in the UK rose more than expected last month, which means the government borrowed nearly £15bn more than forecast over the year than in the previous fiscal year. Borrowing – the difference between total public sector spending and income – was £16.4bn in March; this was £2.8bn higher than in March 2024, and the third-highest March borrowing since monthly records began in 1993. This means the government borrowed £151.9bn in the fiscal year to March – £20.7bn more than in the previous year, and £14.6bn more than the £137.3bn forecast by the Office for Budget Responsibility (OBR), the arbiter of the public finances. Public sector net borrowing excluding public sector banks was £151.9 billion (or 5.3% of GDP) in the 2024 to 2025 financial year,£20.7 billion (or 0.5 percentage points) more than in the previous year and the third highest total on record. Read more ➡️ — Office for National Statistics (ONS) (@ONS) April 23, 2025 Nabil Taleb, economist at PwC UK, said: Debt interest payments reached £4.3bn in March, the highest March figure since monthly records began 27 years ago. This reflects the fiscal challenge the chancellor faces. Higher debt servicing costs as a share of total revenues will leave the public finances more exposed to future economic shocks. Reeves continues to hold the fiscal line, but the next six months will be critical—and she needs some clear wins. While her spring statement restored the £9.9bn headroom, that cushion remains precarious. In the worst-case scenario outlined by the government's independent forecaster, Trump's new tariffs could alone shave 1% off UK GDP—enough to wipe out the headroom entirely. The rising cost of government borrowing and growing global uncertainty are compounding the pressure for Rachel Reeves to put tax rises on the table during the autumn budget. Stocks and the dollar bounced back and oil prices rose, as Donald Trump rowed back on his attacks on America's top central banker, whom he called a 'major loser' on Monday for now cutting interest rates. He said he had no plans to fire Federal Reserve chair Jerome Powell, and hinted at lower tariffs for China, cheering investors. In Asia, Japan's Nikkei rose by 1.75% and Hong Kong's Hang Seng was up just over 2%. The dollar, which hit a three-year low yesterday before recovering, rose by 0.25% against a basket of major currencies. In oil markets, Brent crude is 1.3% ahead at $68.32 a barrel while US crude rose by 1.37% to $64.55 a barrel. The Agenda 9am BST: Eurozone HCOB PMI surveys flash for April 9.30am BST: S&P Global PMIs flash for April 10am BST: Eurozone trade for February 2.45pm BST:: US S&P Global PMIs flash for April 5.30pm BST: Bank of England governor Andrew Bailey speaks Share
