India manufacturing PMI rises to 5 year high in December

Posted January 02, 2018

It was a positive end for the Vietnamese manufacturing sector in 2017 with the Manufacturing Purchasing Managers' Index (PMI) rising to 52.5 in December from November's 51.4, according to the latest survey from Nikkei's IHS Markit that released on Tuesday. This was consistent with the strongest improvement in the health of the sector since December 2012.

China is expected to have grown by close to 7 percent in 2017, but the world's second largest economy is likely to slow in the new year on the back of those measures, highlighted as policy priorities at October's key Communist Party congress. A result above 50 indicates an expansion in manufacturing activity while a result below that indicates a contraction.

Manufacturers added workers in December for the eighth consecutive month, which helped them reduce their backlogs of unfinished work.

Finally, the Future Output Index signalled the strongest level of confidence in three months, with more than one-in-five survey participants forecasting higher production.

The World Bank last month raised its projection for China's gross domestic product (GDP) a year ago to 6.8%, up from its October estimate of 6.7%, citing support from strong exports and robust domestic household consumption.

In China, manufacturing growth unexpectedly picked up to a four-month high in December amid a surge in new orders, suggesting continued strength in global trade.

Companies continued to shrink their payrolls last month, despite stronger increases in demand and production, but the rate of job losses was the slowest in nine months.

The figures showed that China's full-year 2017 economic growth would be at about 6.9 percent and around 6.5 percent for 2018, according to the China Federation of Logistics and Purchasing, which compiles the data. It was the first slowdown in growth since early 2016.

At the annual Central Economic Work Conference (CEWC) chaired by President Xi Jinping, top policymakers pledged to focus on creating "high quality" growth.

Analysts say the difference stems from the fact that the Caixin/PMI index tracks smaller, private firms, more sensitive to exports.

The Caixin PMI focuses more on light industry, while heavy industry makes up a larger share of the NBS survey. Meanwhile, the non-manufacturing PMI rose moderately to 55.0 from 54.8 a month ago.