Czech Manufacturing Growth Accelerates In September

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Among surveyed countries in Southeast Asia, manufacturing growth in the Philippines only followed Vietnam with production PMI of 53.3 in the previous month. The health of the sector has now strengthened in 22 consecutive months.

The Australian PMI® is now leading the ABS manufacturing output data by about three months.

"This is also happening alongside rising commodities prices, which are contributing to inflationary pressures across the supply chain". Conversely, stocks of finished goods rose during the month.

According to IHS Markit, order book gains continued to underwhelm despite growth in exports, which weigh on hiring. The increase in input costs was the strongest since May 2011.

Companies also charged more for their products, with the gauge of output prices rising to 55.5 from 54.3.

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More jobs Employment has also increased - slightly lower than the rate seen in August, which was a three-year record - but jobs growth has been recorded across all key manufacturing sectors, including intermediary, investment and consumer.

"O$3 ptimism regarding output remained high, encouraging firms to increase purchases of inputs", Mr. The rate of expansion was solid, and the fastest since April. As a effect, stocks of purchases also declined.

Suppliers' delivery times continued to lengthen, albeit to the least extent in the current eight-month sequence of longer lead times. Planned overseas expansion is contributing to a positive outlook for the sector, as manufacturers look to increase their global client bases, expand into new territories and invest in new products and greater efficiency, both at home and abroad.

"Although it looks as if the sector made solid progress through the third quarter as a whole, the growth slowdown in September is a further sign that momentum is being lost across the broader United Kingdom economy", said Rob Dobson, director at IHS Markit. "Meanwhile, concerns regarding future business prospects echoed a note of caution, with confidence dipping to the lowest level since December 2012".

Against that background, the BoE surprised investors last month when its officials said they were likely to raise interest rates soon, citing a reduced tolerance for above-target inflation.