Closing summary
The British manufacturing sector contracted in January for the sixth month in a row as it was hit by inflation, shortages and weak demand, according to the closely followed purchasing managers’ index (PMI). Even worse was the decline in the US manufacturing sector at the start of 2023, although the rate of decline slowed.
Meanwhile, the eurozone’s manufacturing downturn eased further in January and cost pressures faded, according to the PMI. Inflation in the euro area slowed to 8.5% in January, down from 9.2% in December, according to a flash estimate from Eurostat, the EU’s statistical office.
House prices in the UK continued to fall in January, sliding for the fifth month in a row, according to Nationwide, pushing the average cost of a home 3.2% below the peak seen last August.
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Thank you for reading. We’ll be back tomorrow. Take care – JK
US manufacturing decline continues in January – PMI
The US manufacturing sector continued to decline at the start of 2023, according to the latest PMI from S&P Global, although the rate of decline slowed.
The downturn in January was driven by a sharp contraction in new orders, a further drop in output and ongoing efforts to reduce inventories, with subdued sales from domestic and export markets.
Factory input costs and output charges rose at increased rates as price pressures strengthened again. Even so, business confidence ticked higher amid hopes of stronger demand in the months ahead, greater supply chain stability and investment in new products.
The S&P Global US Manufacturing Purchasing Managers’ Index posted 46.9 in January, up slightly from 46.2 in December and broadly in line with the earlier released ‘flash’ estimate of 46.8.
