© Reuters. FILE PHOTO: Containers are seen at a port in Ningbo, Zhejiang province, China May 28, 2019. REUTERS/Stringer
BEIJING (Reuters) – China’s factory activity expanded at its fastest pace in four months in October, buoyed by stronger demand, but power shortages and rising costs weighed on production, a business survey showed on Monday.
The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 50.6 in October — its highest level since June. Economists in a Reuters poll had expected the index to remain unchanged from September at 50.0. The 50-mark separates growth from contraction on a monthly basis.
China’s economy is slowing after an impressive rebound from the pandemic-driven slump early last year, with its sprawling manufacturing sector hit by COVID-19 outbreaks, higher costs, production bottlenecks, and more recently, power rationing.
A power crunch triggered by a shortage of coal, tougher emissions standards, and strong industrial demand has led to widespread curbs on electricity usage, hurting factory output.
A sub-index for output showed production shrank for the third consecutive month and at a faster rate than in September.
An official survey on Sunday showed China’s factory activity contracted more than expected in October to shrink for a second month.
The Caixin survey, which focuses on smaller, export-oriented firms in coastal regions, showed domestic demand was stronger as local COVID-19 cases dwindled, but foreign demand remained sluggish as the pandemic raged on in other countries.
A sub-index for new orders rose to 51.4 from 50.8 in September, while new export orders shrank for a third straight month.
“To sum up, manufacturing recovered slightly in October from the previous month. But downward pressure on economic growth continued,” said Wang Zhe, senior economist at Caixin Insight Group.
“Supply strains became the paramount factor affecting the economy. Shortages of raw materials and soaring commodity prices, combined with electricity supply problems, created strong constraints for manufacturers and disrupted supply chains.”
Input prices rose at their fastest pace since December 2016, partly due to increasing energy and transport costs, while factories cut jobs for the third straight month, albeit at a slower pace than in September, according to the survey.
To help struggling manufacturers, China’s cabinet announced on Wednesday that the government will defer some taxes for manufacturers for three months from November.
China’s economic growth is likely to slow to 5.5% in 2022 from an expected expansion of 8.2% this year, a Reuters poll showed. The economy expanded by 9.8% in the first three quarters of 2021 from a year ago.
Wang from Caixin Insight Group warned that a new wave of COVID-19 outbreaks in many central and western regions since late October could deal a fresh blow to economic activity.
“It is critical to balance the goals of controlling the outbreaks and maintaining normal economic activity,” said Wang.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Italy says can exceed 3.1% growth target for 2022 despite energy prices
© Reuters. FILE PHOTO: People walk along the Galleria Vittorio Emanuele II shopping mall in Milan, August 25, 2015. REUTERS/Flavio Lo Scalzo
ROME (Reuters) – Italy’s Treasury said the country’s economy could grow this year by at least as much as Rome’s official target of 3.1% set in April, despite the negative impact of surging energy prices.
Italy grew 0.1% in the first quarter from the previous three months, national statistics bureau ISTAT said last month, revising up a preliminary estimate of a 0.2% contraction.
This left Italy with so-called “carryover” growth of 2.6% this year, assuming gross domestic product was flat in the remaining three quarters, ISTAT said.
Announcing on Monday the bond issuance programme for the third quarter, the Treasury said it expected growth to accelerate in the second quarter, compared with the first three months.
This still makes it plausible to reach or exceed the 2022 growth target of 3.1%, it said in its debt issuance report.
Prime Minister Mario Draghi’s government in April revised down its 2022 economic growth forecast to 3.1% from a 4.7% projection made last September.
The government has budgeted since January more than 33 billion euros ($34.90 billion) to soften the impact of sky-high electricity, gas and petrol costs.
($1 = 0.9456 euros)
French consumer confidence falls more than expected in June
© Reuters. A woman shops at a fruit and vegetables shop in Paris, France, June 10, 2022. REUTERS/Sarah Meyssonnier
PARIS (Reuters) – French consumer confidence fell more than expected in June, hitting a near nine-year low as concerns about the economic outlook surged in the face of high inflation and political uncertainty, a survey showed on Tuesday.
The INSEE official statistics agency said its consumer confidence index fell to 82 in June from 85 in May and the lowest level since July 2013.
A Reuters poll of 14 economists had an average forecast of 84 with the lowest estimate for 83.
Although households’ concerns about future inflation remained well above the long-term average, they eased in June for the third month in a row.
However, household sentiment about the general economic outlook continued to worsen, falling to the lowest level since May 2020 when France was in the second month of its first and most strict COVID-19 lockdown.
While surging inflation has stressed households in recent months, France’s political situation has added to uncertainty about the economic outlook since President Emmanuel Macron’s party lost its ruling majority in legislative elections this month.
Peru truckers, farmers to strike over fuel and fertilizer costs
© Reuters. FILE PHOTO: People walk next to parked trucks during a national transportation strike against fuel prices, in Lima, Peru March 18, 2021. REUTERS/Angela Ponce/File Photo
By Marco Aquino
LIMA (Reuters) – Peru’s truckers and some farm groups will go on strike on Monday after failing to reach agreements with the government seeking measures to reduce the impact of steep global price rises of fuel and fertilizer, sector leaders said on Sunday.
Union leaders met on Friday and Saturday with government representatives, with demands including considering freight transport a “public service” that would reduce costs and curb competition from truckers from neighbor countries.
“We are firm in plans to strike with all our bases nationwide,” the leader of the heavy load haulage and drivers union Marlon Milla told radio station RPP. The union has 400,000 cargo transport units in 14 of the 25 regions of the country.
High global fuel prices linked to Russia’s invasion of Ukraine have stoked unrest in Peru, the world’s No. 2 copper producer, while shortages of fertilizer have raised fears over food supply with the government struggling to secure shipments.
The government of leftist President Pedro Castillo, who has seen his popularity tumble since taking office last year, has taken measures to curb the rising cost of living, but the annual inflation rate remains at around 8%, its highest level in 24 years.
Some farming unions also announced strikes on Monday, in protest at the rise in fertilizer prices and shortages.
Latin American leaders are grappling to bring down spiraling prices despite major interest rate hikes. Trucking protests over fuel costs have hit Argentina while Ecuador is being roiled by protests in part linked to gas prices. [L4N2YB27W]
“The dialogue has not been exhausted, we are in a permanent session of ministers to avoid protest,” Justice Minister Félix Chero told reporters on Sunday. The government is offering subsidies for road tolls and fertilizer costs.
Copper price chart fluctuates at previous closing levels
Copper prices chart are fluctuating slightly near the level of the previous close as investors estimate a lot of factors,...
Natural gas price in Europe per 1,000 m3 hits $2,100 on the exchange
Natural gas price Europe per 1,000m3: September gas futures contracts (benchmark TTF) were trading at $2,100 per 1,000m3 on Monday,...
Portugal and cryptocurrency: 12 companies await permission to operate
Portugal and cryptocurrency news: Central Bank is considering 12 applications submitted by companies that intend to provide cryptocurrency services in...
Vitalik Buterin: Transition to Ethereum PoS algorithm could make crypto payments popular again
During the Korea Blockchain Week 2022 conference, Ethereum co-founder Vitalik Buterin said that the network’s move to Ethereum PoS algorithm...
Hodlnaut news: cryptocurrency lender halted cryptocurrency withdrawals
Urgent Hodlnaut news: Cryptocurrency lending site Hodlnaut has unilaterally frozen cryptocurrency withdrawals. This is reported in the blog of the...
World food prices chart: World food prices have plummeted
Why are worldwide food prices rising? First, because of the current world situation. But world food prices fell sharply in...
Are hedge funds bad? Investors are disappointed in hedge funds
Are hedge funds bad? This year is sure to be one of the worst years in hedge fund history. In...
Chinese economy 2022: China will give up first place in the list of the largest importers of raw materials
Chinese economy 2022 news: China’s commodity-buying companies will be adversely affected by government debt and demographic problems. Over the next...
Positive news from the U.S. labor market has raised fears of further FED rate hikes this year
FED rate hikes and inflation this year are at record highs. The U.S. jobs data released on Friday were truly...
The strength of the U.S. dollar delayed the recession announcement
The jobs report was released at the end of last week’s work week. Economists were confident that 258,000 jobs were...
The US market today maintains growth. Inflation Ahead
The main U.S. index closed the week near the highs of recent months, the highest prices since early May. The...
Price of gold falls on expectations of further US Federal Reserve rate hike
Price of gold falls: the price of the precious metal on Monday morning slightly decreased on the prospects of further...
Goldman Sachs oil price forecast 2022: Oil price forecast worsens in Q3 and Q4
Current Goldman Sachs oil price forecast 2022: Analysts (NYSE:GS) believe another drop in Brent prices has been driven by low...
Why is oil rising in price today after a decline last week
Why is oil rising in price? The price of October futures on London’s ICE Futures Exchange for Brent amounted to...
The Balance: Bitcoin bearish trend hasn’t stopped Americans from investing more in cryptocurrencies
Analytical resource The Balance posted a report stating that 39% of U.S. investors have become more invested in cryptocurrencies, despite...
Cumberland: institutional investors give bitcoin growth predictions as high as $32,000 as early as 2022
US market maker Cumberland conducted a survey of institutional investors and found that most respondents were making bitcoin growth predictions...
Is dogecoin a good investment? Elon Musk: Dogecoin is much faster than the Bitcoin network
Is dogecoin a good investment? The CEO of Tesla again spoke out in support of Dogecoin. He stressed that the...
Voyager Digital is restructuring and preparing for sale
Cryptocurrency broker Voyager Digital said it is preparing a plan to restructure and resume cash withdrawals from the platform According...
Mike McGlone: Ethereum and Bitcoin oversold
A senior commodities strategist at Bloomberg Intelligence believes that according to technical analysis of the market, leading cryptocurrencies are selling...
Chainlink protocol developers refused to support next Ethereum fork
Ethereum is preparing to switch to PoS, and the community expects forks of the second cryptocurrency to appear on the...
PredictIt news: CFTC shuts down PredictIt prediction market in US
Important PredictIt news: The U.S. Commodity Futures Trading Commission (CFTC) has issued an order to shut down one of the...
Is bitcoin mining profitable today? Bitcoin mining difficulty drops for third month in a row
Is bitcoin mining profitable? The difficulty of mining bitcoin began to drop precipitously as the largest-capitalization cryptocurrency’s price fell below...
WazirX news: Indian authorities froze assets of WazirX
WazirX news: India’s economic intelligence agency froze assets of Binance-bought WazirX after allegations of money laundering Indian authorities have seized...
US recession and stock market. Thomas Barkin, Fed: Recession is virtually impossible
The U.S. recession and the stock market are closely linked. The key U.S. stock market indices – Dow Jones, NASDAQ...
Euro rate chart: the euro is not going into a trap
No matter how much FOMC officials try to convince investors of the Fed’s commitment to aggressive tightening of monetary policy,...
European stock market news: Europe started to lag behind the rise in U.S. stock prices
Current European stock market news: U.S. stock futures rose slightly Friday, helped by tech stocks as investors prepare for the...
Dollar rate today live: What is happening to the dollar today?
As you know, the dollar exchange rate has been lagging lately. We all wish wars would end as quickly as...
U.S. stock market capitalization 2022: Morgan Stanley advises against buying U.S. stocks
U.S. stock market capitalization by 2022 leaves much to be desired. The key U.S. stock market indexes – DOW Jones,...
EUR/USD: European Union’s main currency problems
EUR/USD: The pair stayed in the flat, as investors refrained from making big bets before the U.S. labor market data...
Asian stock market charts: Major Asian indicators are up 0.88%
What’s happening on the Asian stock market charts right now? The major Asian indicators are mostly up 0.88%. Some indicators,...
- Coronavirus9 months ago
Biden administration still seeking agreement from Mexico on return of asylum seekers
- Cryptocurrency9 months ago
NFT World Records: CryptoDragons Sold Out 500 Eggs in Its Primary Pre-Sale in Тhe Тwinkling of аn Еye!
- Economy9 months ago
Analysis-Europe’s big payday remains elusive even as inflation surges
- Cryptocurrency8 months ago
In the Wilder World, Staking and Liquidity Mining Have Arrived
- Cryptocurrency9 months ago
Crypto.com is the #1 app in the Google Play Store in the US
- Cryptocurrency9 months ago
The Next Web 3.0 Social Media Will Be Built on Solana
- Stock Markets4 months ago
WeLion Cooperates with Nio to Produce Semi-Solid Battery
- Forex9 months ago
Dollar Consolidates After Strong Gains; Tapering Could Be Speeded Up