China manufacturing growth slows in January

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The subdued growth in business activity translated into slower new orders growth, which expanded at the slowest pace since October a year ago.

In its analysis Markit further noted that last month the sector witnessed 'the strongest cost growth rate recorded in the last 70 months'. Anything above 50 indicates that activity levels improved, while a reading below 50 suggests activity levels declined.

Euro-area manufacturing expanded at the strongest pace in almost six years, with firm order growth signaling a build-up of underlying price pressures.

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The UK's manufacturing PMI dipped slightly to 55.9 in January, according to data providers IHS Markit, only slightly down from a 2.5-year high in December.

All three sub-sectors of housing, commercial and civil engineering saw output soften, but remain above July's lows, with housebuilding enduring its weakest expansion for five months, with its activity index sinking to 52.6 from 54.9 in December.

Input prices rose at the fastest pace in 57 months, while stock shortages intensified, prompting manufacturers to raise charges to protect their profit margin, the survey said. Looking ahead, around 41% of the survey panel anticipate an increase in production volumes over the next 12 months, while only 6% forecast a reduction.

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"New business volumes also expanded at a softer pace in January, but there were more positive trends in terms of staff hiring and business optimism regarding the year-ahead outlook".

Pollyanna De Lima, Economist at IHS Markit, said, "The Indian manufacturing economy recovered from the one-off downturn that hit the sector in December following the withdrawal of high-value banknotes".

Mike Rigby, head of manufacturing at Barclays: "Although the growing prospect of inflationary pressure looms large and the impact of Brexit continues to cause much uncertainty, it is encouraging to see that the manufacturing sector is just getting on with business as usual".

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