POLL-UK factory activity at 2-yr high, new orders surge

1984ReturnsForReal_2

Oh Sorry...


I thought you said Pole...

HAMISH_MCTAVISH

Britain's manufacturing sector expanded at its fastest rate for two years in October, according to the monthly survey by CIPS/Markit, helped by strong growth in output and new orders.

The Purchasing Managers’ Index rose from 49.9 in September to 53.7 in October, a far higher rise than expected, moving back above the 50 mark that indicates no change. The reading was its highest since November 2007.

The Chartered Institute of Purchasing & Supply said that the improvement — the third-biggest rise in the series' history — was driven by marked rebounds in new work received and that this, in turn, had encouraged manufacturers to reopen production lines mothballed during the recession. It said that this was an encouraging sign that the growth was sustainable.

Oh dear.... That doesn't fit in at all well with the bear meme that we are just postponing the "next big leg down" in the recession....:rolleyes:

Graham_Devon

HAMISH_MCTAVISH wrote: »

[/B]

Oh dear.... That doesn't fit in at all well with the bear meme that we are just postponing the "next big leg down" in the recession....:rolleyes:

I actually thought we might be starting the next leg down.

You aint posted a thread about how rosy the UK is all day! Thats one big indicator!

Generali

HAMISH_MCTAVISH wrote: »

[/B]

Oh dear.... That doesn't fit in at all well with the bear meme that we are just postponing the "next big leg down" in the recession....:rolleyes:

Whilst this is undeniably good news, according to Wikipedia, 18% of Britons are employed in manufacturing so best not get carried away:

http://en.wikipedia.org/wiki/Economy_of_the_United_Kingdom

fc123

I deal with 3 factories making in UK.
One knits all his own cloth and, has just bought a seperate factory to CMT (cut, make, trim) from the jerseys he produces.

Chatting to him last week, he was telling me about his company liquidating a few years back (3miillion lost apparently) due to the changes in the industry plus everything had finally gone offshore except the 'small stuff' as he called it.

He has changed his working practises, renovated and brought back into use loads of machinery that had been sitting idle for years and is dead busy doing fast fashion, working for small producers (like me) which has also led to some good, regualar corp dockets too.

Factory 2 are eager to please but are young with one owner in his final year at LSE. Early 20's, have a bit of BTL and decided to buy a going concern 2 years ago (no freehold). They deal with niche customers in London and do well despite being a bit hit and miss.

Factory 3 is stuck in 1953 but does a great job (due to his staff) however his place is full of empty rooms containing mothballed machinery. He retires in 2 years time and has lost interest.
If someone with zap took it over, it would have more work than it could cope with. He turns down work all the time from small producers as he doesn't want the hassle. Then moans about how hard things are.

I get approached by Chinese manufacturers all the time and am getting quotes for some stuff at the moment (very labour intensive styles) but it's not coming in that cheap TBH.

I have heard this a lot recently and know of one person bringing their production back to UK due to the hassle factor of making off shore. Customs is a PIA too if they decide to check your stuff.
It can go out of fashion in the time it takes to get it released.

Cleaver

Graham_Devon wrote: »

You aint posted a thread about how rosy the UK is all day! Thats one big indicator!

I was just looking at how th Dow closed today and this was the first link on Google Finance, which is all about how rosy the US is if that helps?

Major indexes rose more than 1 percent in midday trading Monday, including the Dow Jones industrials, which jumped about 115 points, erasing a chunk of Friday's 250-point loss. The gains came after the Institute for Supply Management said the manufacturing industry grew at the fastest pace in October since April 2006. The ISM manufacturing index clocked in at 55.7, much better than the 53 economists had expected. It was the third month in a row the index came in above 50, which indicates growth.

Meanwhile, the National Association of Realtors said pending home sales increased for the eighth straight month in September. The index rose 6.1 percent from August to 110.1. It was the highest reading since December 2006 and more than 21 percent above a year ago. Economists had expected the index would be level at 103.8.

Cleaver was voted most handsome man in the world for the fourth year in a row. Seasoned commentators had predicted he would come third this year.

Also Monday, the Commerce Department said construction spending increased 0.8 percent in September, matching the gain in August. Economists had been expecting a 0.3 percent decline.

"This should help relieve some of the fears that the recovery is not sustainable," said Peter Cardillo, chief market economist Avalon Partners Inc. of the reports.

The Dow Jones industrial average rose 115.55, or 1.2 percent, to 9,828.28. The Standard & Poor's 500 index rose 11.62, or 1.1 percent, at 1,047.81, and the Nasdaq composite index rose 16.72, or 0.8 percent, to 2,061.83.

I made one of those quotes up.

Generali

Cleaver wrote: »

I was just looking at how th Dow closed today and this was the first link on Google Finance, which is all about how rosy the US is if that helps?





I made one of those quotes up.

It's the one about house prices, right?

Cleaver

Generali wrote: »

It's the one about house prices, right?

No, the one about Peter Cardillo. He's actually my mate who works at Maccy D's, not chief market economist at Avalon Partners. The quote is accurate though.

mbga9pgf

I love the PMI. Look how it is defined. Lots of opinion, not much in the way of hard evidence.

HAMISH_MCTAVISH

mbga9pgf wrote: »

I love the PMI. Look how it is defined. Lots of opinion, not much in the way of hard evidence.

Seemed plenty good enough for the bears when it was on the way down....:rolleyes: