Economic Indicators
Japan’s June factory activity growth eases on China curbs – flash PMI
Published
5 days agoon
By
letizo News
© Reuters. FILE PHOTO: A worker walks near a factory at the Keihin industrial zone in Kawasaki, Japan, March 8, 2017. REUTERS/Toru Hanai
TOKYO (Reuters) – Japan’s factory activity growth slowed in June as China’s strict COVID-19 curbs took a toll on manufacturing demand, even as service sector sentiment hit a nearly nine-year high on the fading pandemic drag.
China’s COVID-19 lockdowns have disrupted supply chains, heavily impacting trade-reliant economies such as Japan.
The au Jibun Bank flash Japan Manufacturing purchasing managers’ index (PMI) slipped to a seasonally adjusted 52.7 in June from a final 53.3 in May, marking the slowest expansion since February when it also was 52.7.
In April and May, the manufacturing PMI also grew at a slower rate than in the prior month.
Overall new orders shrank for the first time in nine months due to the deepening pressure on already disrupted supply chains, while output grew at its slowest rate in three months, the survey showed.
New business in the services-sector rose for a second straight month as a pickup in tourism helped strengthen overall private-sector conditions.
“Activity at Japanese private sector businesses rose solidly,” said Usamah Bhatti, economist at S&P Global (NYSE:SPGI) Market Intelligence, which compiles the survey.
Overall private-sector sentiment saw the sharpest rise since November amid the strongest expansion in services since October 2013, he said.
The au Jibun Bank Flash services PMI Index improved to a seasonally adjusted 54.2 in June from the prior month’s 52.6 final. The 50-mark separates contraction from expansion.
The au Jibun Bank Flash Japan Composite PMI, which is calculated by using both manufacturing and services, rose to 53.2 from a final of 52.3 in May.
But the survey also showed Japanese firms continued to face widespread pressure from high raw material prices.
“Prices charged for Japanese goods and services rose at an unprecedented rate for the second successive month as higher material and staff cost burdens were partially passed through to customers,” Bhatti added.
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Economic Indicators
Peru truckers, farmers to strike over fuel and fertilizer costs
Published
1 day agoon
June 26, 2022By
letizo News
© 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.
Economic Indicators
French lawmakers plan $8.4 billion aid for households to fight inflation
Published
1 day agoon
June 26, 2022By
letizo News
© Reuters. A shopper pays with a ten Euro bank note at a local market in Nice, France, June 7, 2022. REUTERS/Eric Gaillard
PARIS (Reuters) – French lawmakers are drafting a bill to shore-up household buying power by raising some forms of government assistance by 4%, at a cost of 8 billion euros ($8.44 billion) from July to April next year, business daily Les Echos reported on Sunday.
According to the report, the planned increases would apply to welfare benefits for families, unemployed workers and disabled people as well as pension payouts, effective in July.
Housing allowances, meanwhile, could be increased by around 3.5% starting in July as part of a separate bill.
France’s central bank forecast this month that French inflation would average 5.6% this year before falling to 3.4% in 2023 and easing to just below the European Central Bank’s 2% target in 2024.
($1 = 0.9475 euros)
Economic Indicators
Israel to let more Palestinians work in manufacturing to fill labour shortage
Published
2 days agoon
June 26, 2022By
letizo News
© Reuters. FILE PHOTO: A Palestinian worker holds up his ID card as he is processed after entering Israel through the Erez Crossing, on the border with Gaza, February 20, 2022. REUTERS/Amir Cohen
By Steven Scheer
JERUSALEM (Reuters) – Israel’s cabinet approved issuing 3,500 additional permits for Palestinian workers in Israel’s manufacturing and services sectors, increasing the number to 12,000 to help relieve a shortage of skilled staff, the Economy Ministry said on Sunday.
Workers from the West Bank and Gaza Strip, territories which Israel captured in the 1967 Middle East War, require permits to cross checkpoints and enter Israel where wages are higher.
Israel employs nearly 100,000 West Bank and Gaza Palestinian workers, according to the Israeli Population and Immigration Authority. But most work in construction or agriculture, with only a comparatively small number given permits for jobs in factories or the services sector.
Israel’s jobless rate is around 3%, and the economy ministry said the existence of 14,000 vacancies in manufacturing was creating a barrier to economic growth.
Economy Minister Orna Barbivai said in a statement that in addition to the extra work permits for Palestinians, the ministry plans to work to increase manufacturing productivity through automation and digitalisation.
The quota for Palestinian workers in manufacturing will automatically be reduced if the annual average unemployment rate in Israel rises above 7.5%, the government said.
Ron Tomer, head of Israel’s Manufacturers’ Association, called the decision to boost numbers of Palestinians allowed to work in Israel a “lifeline” for the industrial sector given severe shortages of workers.
“There are currently thousands of open jobs that manufacturers find difficult to fill, and we believe that increasing the quota will help reduce the severe shortage at least in the short and medium term and help the industry continue to operate and grow in Israel,” he said.
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