Britain misses out as global manufacturing surges

[snoop1130]

Britain misses out as global manufacturing surges

By Jonathan Cable and Nichola Saminather

 

 

LONDON/SINGAPORE (Reuters) - British factories were left out of a demand-driven surge in activity across much of Asia and Europe in June, as weakness in sterling failed to translate into export growth, surveys showed.

 

Factories in the euro zone rounded off the first half of 2017 by ramping up at the fastest rate for over six years while Asia's tech-manufacturing economies were helped by growing global demand for electronics products.

 

But British manufacturing grew more slowly than anyone polled by Reuters expected as consumers faced the double-hit of accelerating inflation - caused in large part by the fall in the pound since last year's vote to leave the EU - and slowing wage growth.

 

Monday's survey suggested the supposed silver lining of a weakened pound - more competitive exports - is proving elusive and could make Bank of England officials think twice about raising interest rates.

 

The Markit/CIPS UK Manufacturing Purchasing Managers' Index (PMI) fell to 54.3 from a downwardly-revised 56.3 in May, a three-month low and below all forecasts in a Reuters poll of economists that pointed to a reading of 56.5. A reading above 50 indicates growth.

 

"The decline in the PMI in June robustly challenges hopes that manufacturing and exports will pick up and offset the consumer spending slowdown. Today's manufacturing report weakens the case for raising interest rates soon," said Samuel Tombs at Pantheon Macroeconomics.

 

June's manufacturing PMI for the euro zone rose to 57.4, its highest since April 2011 and up from May's 57.0.

 

Suggesting the bloc's momentum will continue into the second half, new orders rose at the fastest rate since early 2011, backlogs of work increased at the fastest pace in over 13 years, raw materials were depleted and factories increased headcount at a near-record pace.

 

The upturn came alongside factories increasing prices, as they have done for nine months, welcome news for policymakers at the European Central Bank who have been battling for years to get inflation back to their 2 percent target ceiling.

 

Inflation was a stronger-than-expected 1.3 percent in June, official flash data showed on Friday, and while still below target, recent strong economic data meant ECB chief Mario Draghi last week raised the prospect of policy tightening.

 

In Britain, central banker have started to signal that a first rate hike in a decade might be approaching to help curb the sharp rise in inflation.

 

BoE Governor Mark Carney says he is watching to see how the economy copes with the launch of Brexit talks and whether weakness among consumers could be offset by investment and exports.

 

ASIA ACCELERATION

 

Private sector surveys of manufacturers in Asia showed factories in China, South Korea, Japan and Taiwan picked up in June, driven largely by a recovery in exports.

 

But continued declines in energy prices, which weighed on manufacturing in Indonesia and Malaysia, could hurt these two economies, while in India, sluggish domestic demand offset strong foreign demand and led to a slowdown.

 

Factory PMIs for South Korea, Japan, Taiwan Vietnam and India all remained above 50. And all of them, except for Japan and India, rose from May.

 

"But the ability for manufacturers to continue to accelerate, or to maintain sharp surges in production, is in question given underlying demand, apart from some bright spots, doesn't seem to have permeated more widely across the different sectors," said Vishnu Varathan at Mizuho Bank.

 

While manufacturing expanded at the fastest pace in three months in June in China, business confidence slumped to its lowest level this year amid a government crackdown on debt risks and tightening financial conditions.

 

"We believe cyclical momentum (in China) has likely peaked and will ease further due to tighter financial conditions," Yin Zhang and Helen Qiao at Merrill Lynch wrote in a note.

 

"Looking ahead, since overall growth is still higher than the policy target level at around 6.5 percent for real GDP, we expect policy makers to maintain the tightening bias in (the second half), which is likely to impose downward pressure on growth until early 2018."

 

In Japan, confidence among big manufacturers hit its highest level in over three years in June, according to a survey from the central bank published on Monday.

 

(editing by John Stonestreet)

 

-- © Copyright Reuters 2017-7-3

[ilostmypassword]

And yet there are those who blame the EU for the UK's decline in manufacturing and assert that an exit from the will somehow stimulate its growth.

[Baerboxer]

16 minutes ago, ilostmypassword said:

And yet there are those who blame the EU for the UK's decline in manufacturing and assert that an exit from the will somehow stimulate its growth.

 

Ironically France and Germany would never have allowed, and never will, the decimation of their manufacturing organizations, large, small and medium that happened in Britain. 

 

Had Britain the works councils of Germany, the involvement of local councilors and local professionals, and taken decisions social based decisions like France, taking into account all stake holders and the big picture as well as snap shots then Britain wouldn't be so appallingly stripped of manufacturing skills.

 

But no, we got union controlled numpties facing off with Thatcher, who when unchecked drifted further and further right. Rule by accountants, asset strippers and senior management driven by achieving meaningless KPIs to secure huge bonuses and increase share prices so they can cash their options in. 

 

And leaving the EU will do nothing to re-dress those actions.

 

Rant over.

[ilostmypassword]

1 hour ago, Baerboxer said:

 

Ironically France and Germany would never have allowed, and never will, the decimation of their manufacturing organizations, large, small and medium that happened in Britain. 

 

Had Britain the works councils of Germany, the involvement of local councilors and local professionals, and taken decisions social based decisions like France, taking into account all stake holders and the big picture as well as snap shots then Britain wouldn't be so appallingly stripped of manufacturing skills.

 

But no, we got union controlled numpties facing off with Thatcher, who when unchecked drifted further and further right. Rule by accountants, asset strippers and senior management driven by achieving meaningless KPIs to secure huge bonuses and increase share prices so they can cash their options in. 

 

And leaving the EU will do nothing to re-dress those actions.

 

Rant over.

I agree with you pretty much. But if you go to Brexit threads, you'll find Brexiters saying that brexit will free the UK to find new export markets. I notice that none of those asserting this have made an appearance on this thread.

[Johnyo]

Europe is imploding and she the UK will be able to trade with the rest of the world!

 

 

 

 

Sent from my iPhone using Thaivisa Connect

 

[ilostmypassword]

6 minutes ago, Johnyo said:

Europe is imploding and she the UK will be able to trade with the rest of the world!

 

 

 

 

Sent from my iPhone using Thaivisa Connect

 

Let me repeat to you the first few sentences of that article

Factories in the euro zone rounded off the first half of 2017 by ramping up at the fastest rate for over six years while Asia's tech-manufacturing economies were helped by growing global demand for electronics products."\

 

But British manufacturing grew more slowly than anyone polled by Reuters expected as consumers faced the double-hit of accelerating inflation - caused in large part by the fall in the pound since last year's vote to leave the EU - and slowing wage growth.

 

 

[Retiredandhappyhere]

36 minutes ago, ilostmypassword said:

I agree with you pretty much. But if you go to Brexit threads, you'll find Brexiters saying that brexit will free the UK to find new export markets. I notice that none of those asserting this have made an appearance on this thread.

Perhaps that is because Britain will not be free to pursue new markets until they are actually out of the EU.  

[alant]

44 minutes ago, ilostmypassword said:

I agree with you pretty much. But if you go to Brexit threads, you'll find Brexiters saying that brexit will free the UK to find new export markets. I notice that none of those asserting this have made an appearance on this thread.

That may be as in a similar way Remoaners never explain the negative balance of payments since joining the EC

[ilostmypassword]

6 minutes ago, Retiredandhappyhere said:

Perhaps that is because Britain will not be free to pursue new markets until they are actually out of the EU.  

How is the EU stopping the UK but not other nations such as France, Italy, Germany, Denmark, Sweden, Netherlands, etc...?

[nauseus]

47 minutes ago, ilostmypassword said:

I agree with you pretty much. But if you go to Brexit threads, you'll find Brexiters saying that brexit will free the UK to find new export markets. I notice that none of those asserting this have made an appearance on this thread.

That's only the 3rd post and 2 of them were yours! One set of PMI numbers and the password rash is rampant again.  

[ilostmypassword]

1 minute ago, alant said:

That may be as in a similar way Remoaners never explain the negative balance of payments since joining the EC

Are you contending that before the UK joined the EU it has a positive balance of trade with those nations?

        "Britain joined what was then the European Economic Community in 1973 as the sick man of Europe. By the late 1960s, France, West Germany and Italy — the three founder members closest in size to the UK — produced more per person than it did and the gap grew larger every year. Between 1958, when the EEC was set up, and Britain’s entry in 1973, gross domestic product per head rose 95 per cent in these three countries compared with only 50 per cent in Britain."
 

https://www.ft.com/content/202a60c0-cfd8-11e5-831d-09f7778e7377?mhq5j=e2

[nauseus]

6 minutes ago, ilostmypassword said:

Are you contending that before the UK joined the EU it has a positive balance of trade with those nations?

        "Britain joined what was then the European Economic Community in 1973 as the sick man of Europe. By the late 1960s, France, West Germany and Italy — the three founder members closest in size to the UK — produced more per person than it did and the gap grew larger every year. Between 1958, when the EEC was set up, and Britain’s entry in 1973, gross domestic product per head rose 95 per cent in these three countries compared with only 50 per cent in Britain."
 

https://www.ft.com/content/202a60c0-cfd8-11e5-831d-09f7778e7377?mhq5j=e2

Alan is saying that since joining the EEC/EC/EU BOP has gone further and further negative and he is correct. ]

 

[ilostmypassword]

2 minutes ago, nauseus said:

Alan is saying that since joining the EEC/EC/EU BOP has gone further and further negative and he is correct. ]

 

You may be a mindreader and know what he meant to say. But this is what he wrote:

"That may be as in a similar way Remoaners never explain the negative balance of payments since joining the EC"

But if that is what he meant to say, then he is wrong.

Follow this link:

https://tradingeconomics.com/united-kingdom/balance-of-trade

 

 

 

[goldenbrwn1]

It's one set of pmi numbers FCS's. If you check the pmi for manufacturing in the UK they have been up and down on expectations every month in the last six or more but all in growth territory.  I wonder if this news story would of been a thing if it came in at the expected rate or more ? I doubt it. Let's see what Wednesdays far more important service pmi number is. And even if it's not the expected one or more  it's still going to be over 50 and in positive growth. 

 

And what a pathetic headline ' Britain misses out' 

 

over the last 3 months as a whole the manufacturing pmi for the UK has been strong! But let's not focus on that.

 

 

 

Edited July 3, 2017 by goldenbrwn1

[anon4546543]

Hard to know where to start but I will try.

 

UK may soon be a Sovereign state again, not subject to the new imperialism of EU.

 

"I have the impression that we are rushing for a common currency for the whole of Europe. That would be progress, of course, and, one would hope, of lasting significance"

Letter from Helmuth von Molke (Nazi Military Intelligence) 1940

 

This post is mostly about Asian manufacturing. Since large companies from Europe and the US scrapped most manufacturing due to the low cost and almost and sometimes full "slave labour" conditions in Asia, manufacturing is in decline in all western countries, including the UK. It will catch up with Germany soon.  It is why Merkel was so keen to allow "cheap" labour to pour into Germany.

 

That will back fire of course, Muslims tend to another form of settlement when their conditions, inability to integrate (especially the children) lead them back to basic Muslim principles.

 

If UK has the right merchandise, they will find buyers in former colonies, especially Australia New Zealand and Australia. Britain is still a major financier. They will still be needed in the new

imperialism of Germany and France. (I mean, after these two countries, what else has EU to offer.) 

 

[nauseus]

1 hour ago, nauseus said:

Alan is saying that since joining the EEC/EC/EU BOP has gone further and further negative and he is correct. ]

 

58 minutes ago, ilostmypassword said:

You may be a mindreader and know what he meant to say. But this is what he wrote:

"That may be as in a similar way Remoaners never explain the negative balance of payments since joining the EC"

But if that is what he meant to say, then he is wrong.

Follow this link:

https://tradingeconomics.com/united-kingdom/balance-of-trade

 

 

 

Here's you chart from 1956! Balanced to 1973 then oopsy?

 

[ilostmypassword]

2 minutes ago, nauseus said:

Here's you chart from 1956! Balanced to 1973 then oopsy?

 

From about 1973 to around 1984 it 's in positive territory. So how does that prove that since joining the EU (or the EC as it was back then), the trade deficit has grown? For 11 years after joining it was in positive territory.

[William C F Pierce]

1 hour ago, Retiredandhappyhere said:

Perhaps that is because Britain will not be free to pursue new markets until they are actually out of the EU.  

Not so! Based on the exchange rate, UK goods should be a lot cheaper and outselling the rest of Europe. It just shows what a MYTH Brexit is or was.

[nauseus]

10 minutes ago, ilostmypassword said:

From about 1973 to around 1984 it 's in positive territory. So how does that prove that since joining the EU (or the EC as it was back then), the trade deficit has grown? For 11 years after joining it was in positive territory.

Ever heard of trends?

[nauseus]

7 minutes ago, William C F Pierce said:

Not so! Based on the exchange rate, UK goods should be a lot cheaper and outselling the rest of Europe. It just shows what a MYTH Brexit is or was.

The UK is not free to do that yet though, is it? 

[onthesoi]

3 minutes ago, nauseus said:

The UK is not free to do that yet though, is it? 

What stopping them?

[anon4546543]

10 minutes ago, nauseus said:

Ever heard of trends?

A downward trend since 1998 seems to be more than a trend. lol

In fact it is 1988. That is some trend

Edited July 3, 2017 by spiderorchid
Mistake in first post

[dunroaming]

5 hours ago, Johnyo said:

Europe is imploding and she the UK will be able to trade with the rest of the world!

 

 

 

 

Sent from my iPhone using Thaivisa Connect

 

I wouldn't hold your breath about Europe imploding and of course the UK will be able trade with the rest of the world if that is what the rest of the world wants.  Britain's strength is it's service industry.  You will find Britain's  manufacturing base is owned by overseas companies these days.  

[Enoon]

4 hours ago, spiderorchid said:

Hard to know where to start but I will try.

 

UK may soon be a Sovereign state again, not subject to the new imperialism of EU.

 

"I have the impression that we are rushing for a common currency for the whole of Europe. That would be progress, of course, and, one would hope, of lasting significance"

Letter from Helmuth von Molke (Nazi Military Intelligence) 1940

 

This post is mostly about Asian manufacturing. Since large companies from Europe and the US scrapped most manufacturing due to the low cost and almost and sometimes full "slave labour" conditions in Asia, manufacturing is in decline in all western countries, including the UK. It will catch up with Germany soon.  It is why Merkel was so keen to allow "cheap" labour to pour into Germany.

 

That will back fire of course, Muslims tend to another form of settlement when their conditions, inability to integrate (especially the children) lead them back to basic Muslim principles.

 

If UK has the right merchandise, they will find buyers in former colonies, especially Australia New Zealand and Australia. Britain is still a major financier. They will still be needed in the new

imperialism of Germany and France. (I mean, after these two countries, what else has EU to offer.) 

 

 

What "merchandise" did you have in mind?

 

The gold and silver looted from the Spanish treasure fleets of the 16th century?

 

The slaves transported by British ships in the Atlantic slave trade in the 17th and 18th centuries?

 

The sugar and tobacco produced by those slaves in the West Indies and the long lost American Colonies in the 18th century?

 

The products of the 19th century Industrial revolution originated in the UK, and funded by that slave produced wealth?

 

The raw materials taken from all over the world by a 19th and 20th century trading empire which, protected by the most powerful navy the world had seen, virtually controlled world trade?

 

The goods sold by that empire to it's protected markets throughout the world?

 

That's what you people don't get isn't it?............it was all about the EMPIRE.

 

Like the empire all that head start and privilege is gone.

 

Everyone  is doing it now.

 

The UK has been running on empty since the 50's.

 

But you think you can "dream" it all back.

 

Thanks for "trying"............you failed.

 

 

 

Edited July 3, 2017 by Enoon

[anon4546543]

55 minutes ago, Enoon said:

 

What "merchandise" did you have in mind?

 

The gold and silver looted from the Spanish treasure fleets of the 16th century?

 

The slaves transported by British ships in the Atlantic slave trade in the 17th and 18th centuries?

 

The sugar and tobacco produced by those slaves in the West Indies and the long lost American Colonies in the 18th century?

 

The products of the 19th century Industrial revolution originated in the UK, and funded by that slave produced wealth?

 

The raw materials taken from all over the world by a 19th and 20th century trading empire which, protected by the most powerful navy the world had seen, virtually controlled world trade?

 

The goods sold by that empire to it's protected markets throughout the world?

 

That's what you idiots don't get isn't it?............it was all about the EMPIRE.

 

Like the empire all that head start and privilege is gone now.

 

Everybody is doing it now.

 

The UK has been running on empty since the 50's.

 

But you think you can "dream" it all back.

 

Thanks for "trying"............you failed.

 

 

 

 

 

 

Humbug. And more. For a start very little gold and silver from Spanish conquest of Sth America ever made its way back to Britain.  You have been watching far to many Pirates of the Caribbean movies.

 Tell me how many Spanish galleons were captured by the British Government when fully laden. This is the first of your delusions.

The next is about slaves. Who sold the slaves to many of the worlds ships to transport to the US and the Caribbean. (They all came from Islam countries and the slaves had been captured by Islam countries)  Of the Caribbean, Britain held little land. Sure they used slaves, but the majority was not British. (Look at a map for a start) The products of the Industrial Revolution never had African slave labour involved. What are you smoking?

The UK did use child labour in the mines and in the new technology that Britain invented but to suggest African slaves were involved is pure racism on your behalf. Then you start an uneducated rant about "idiots" and other uneducated rants. Grab half a brain, a full brain would overwhelm you.

P.S. It was the Brits who stopped the slave trade and blew the Islam fort that was supplying slaves to little pieces.   I could go on but it is difficult to debate with a  redneck racist.

[Scott]

Let's stick a little closer to the actual topic of this thread.  

[Stargeezr]

If Britain does not have the factories working, it also does not havethe increased pollution that the

Europe countries have as well. Tax those polluting countrie for the increased pollution first off then make

them all use clean energy to run their factories.  555  Like that will happen!!

Geezer

[alant]

10 hours ago, ilostmypassword said:

You may be a mindreader and know what he meant to say. But this is what he wrote:

"That may be as in a similar way Remoaners never explain the negative balance of payments since joining the EC"

But if that is what he meant to say, then he is wrong.

Follow this link:

https://tradingeconomics.com/united-kingdom/balance-of-trade

 

 

 

Why wrong

 

[Johnyo]

Let me repeat to you the first few sentences of that article
Factories in the euro zone rounded off the first half of 2017 by ramping up at the fastest rate for over six years while Asia's tech-manufacturing economies were helped by growing global demand for electronics products."\
 

But British manufacturing grew more slowly than anyone polled by Reuters expected as consumers faced the double-hit of accelerating inflation - caused in large part by the fall in the pound since last year's vote to leave the EU - and slowing wage growth.

 

 

You missed my Irony


Sent from my iPhone using Thailand Forum - Thaivisa mobile app

[ilostmypassword]

1 hour ago, alant said:

Why wrong

 

So for 11 years after joining the EU the UK enjoys a trade surplus. Then it falls into a deficit. Explain to me why that's the fault of the EU. It seems obvious that other factors are responsible.

Explain to me why virtually every major EU economy enjoys huge trade surpluses with the USA (the world's largest and most diversified economy) while the UK enjoys a much more paltry one. Smaller even than Denmark's, a nation that has less than 1/10 the population of the UK.  How exactly is it that the EU holds the UK back while apparently not hindering the exports of other nations? Maybe the UK should look to its own policies rather than assigning blame elsewhere.