Brazil's Manufacturing Sector Rebounds In October

Brazil's manufacturing sector expanded for the first time in four months in October, helped by a strong pick up in production, data from a survey by Markit Economics and HSBC Bank showed Friday.

The manufacturing purchasing managers' index, adjusted for seasonal variations, advanced to 50.2 in October from 49.9 in September. Readings above 50 signal growth, and those below indicate decline.

Brazilian companies raised their production levels in October, amid expectations of better economic conditions and forecasts of stronger client demand. Production growth was the quickest since May.

New business inflows stabilized during the month, following three successive months of contraction. Export orders, however, fell at the fastest pace since July.

Meanwhile, manufacturers reduced their workforce numbers further in October, stretching the current sequence of job shedding to seven months.

Elsewhere, a report released by statistical office IBGE today showed that Brazil's industrial production increased 2 percent year-on-year in September, after falling 1.2 percent in August. Economists had forecast a 3 percent growth for October.

Sequentially, seasonally adjusted industrial production moved up 0.7 percent, after staying flat in August. The monthly growth rate was forecast to be 1.3 percent.

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2013-11-1 16:42

Indonesia's Current Account Deficit Narrows In Q1

The shortfall in Indonesia's current account decreased significantly in the first quarter, data released by Bank Indonesia showed Wednesday.

The current account showed a deficit of $5.27 billion during the three months ended March, lower than the $7.65 billion deficit seen in the fourth quarter. In the first quarter of 2012, the balance was a deficit of $3.11 billion.

The surplus in the goods trade account increased to $1.64 billion in the first quarter from $0.8 billion in the final three months of 2012. The deficit in the services account dropped to $2.31 billion from $3.32 billion, while the shortfall in the income account decreased to $5.69 billion from $6.34 billion.

The current transfers account showed a surplus of $1.1 billion in the three months to March, compared to the $1.21 billion surplus seen in the preceding three-month period, data showed.

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2013-5-15 17:25

UK SME Business Activity Weaker Than Expected, Survey Shows

Business activity at the U.K.'s small and medium-sized enterprises was weaker than expected in the three months to April with both output and new orders declining, a survey by the Confederation of British Industry showed Tuesday.

According to the industry group's latest SME Trends survey, the decrease in total new orders was driven by falls in both domestic and export demand. Output also fell for the fourth consecutive quarter.

Despite the disappointing performance, optimism about the overall business situation has steadied, following three quarters of decline. Optimism about export prospects rose for the first time in a year, the survey report said.

Employment in the sector ticked up in the three months to April, and manufacturers expect a modest increase in staff levels in the coming quarter.

The survey also found that both domestic and export price inflation were broadly the same quarter-on-quarter, but growth in average unit costs was the fastest since October 2011. This squeezed manufacturers' profit margins once again and this pressure on margins are expected to persist in the coming three months.

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2013-5-7 12:33

U.K. Jobless Claims Drop Unexpectedly, Employment At Record High

U.K. claimant count declined unexpectedly in November and employment reached a record through the three months to October, confounding the weakness in economic activity.

Claimant count dropped by 3,000 month-on-month to 1.58 million in November, the Office for National Statistics said Wednesday. Economists had forecast the figure to rise by 7,000. Claims rose by 6,000 in October, instead of the initially reported 10,100.

At the same time, the claimant count rate held steady at 4.8 percent, as widely expected for November.

Suggesting resilience in the labor market, the number of people out of work declined sharply, while employment increased during the three months ended October.

During the three-month period, there were 2.51 million unemployed people, down 82,000 from May to July, marking the biggest fall since 2001. The jobless rate held at 7.8 percent, matching economists' expectations.

The number of people in work totaled 29.601 million, up 40,000 from the May to July period. The U.K. saw the highest number of people in job since records began in 1971.

According to the Report on Jobs from Recruitment and Employment Confederation and KPMG, permanent placements in the U.K. increased at the fastest pace for 19 months in November. There was also a faster growth in job vacancies due to strong demand from private sector employers.

However, IHS Global Insight's Chief UK economist Howard Archer said there is a real danger that the increase in employment in private sector will not be enough to offset job cuts in the public sector and combat the increasing labor force.

Consequently, Archer said unemployment could trend up gradually to a peak of 2.65 million in late-2013/early-2014, giving an unemployment rate of 8.2 percent.

Moreover, the ONS data showed that total pay including bonus rose only 1.8 percent during three months to October from the corresponding period of last year. At the same time, regular pay, excluding bonuses climbed 1.7 percent.

Consumer price inflation at 2.7 percent in October indicates that real pay fall short to meet rising prices.

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2012-12-12 15:35