Perhaps the defining trait of globalisation is how companies stretched their assembly lines around the world so that goods were made across many countries a long way from where they were sold. Innovations such as barcoding, the pallet, the shipping container (especially) and industrial forklifts that reduced transport costs and... Show More
President Trump recently claimed he will be “the greatest jobs producer that God ever created”. Economists debate how much presidents actually influence job creation and President Trump is coming into office at a time when the US economy is already close to full employment in the opinion of the US... Show More
“In an increasingly common role reversal, companies such as the Chinese textile producer Keer Group are outsourcing production to places where the energy, raw materials, and labor are cheap and convenient -- places such as… South Carolina.” The Chairman of Keer Group says “We chose to locate our first US... Show More
China may still be listed as a developing market but it is progressing rapidly, benefiting from a well educated middleclass and also globalisation, which enabled it to become a top manufacturer for the world. Commentators point out that China’s rising wages are pricing it out of manufacturing within Asia. That... Show More
US manufacturing slows - but still healthy. Manufacturing expanded in February at the weakest pace in a year, limited by weaker growth abroad and a work slowdown at West Coast ports. The Institute for Supply Management's index dropped to 52.9, the lowest since January 2014, from 53.5 a month earlier,... Show More
This very interesting article challenges the accepted notion that the US has transformed itself as a manufacturer over recent years. Upon closer inspection, however, the data for 1999-2012 present little evidence of significant onshoring of US manufacturing. For starters, the share of US domestic demand for manufactures that is met... Show More
US manufacturing continues to show modest growth with June PMI in line with expectations. ISM's Purchasing Manager's Index registered at 55.3 in June, slightly below projections at 55.5 and 0.1% lower than May's number. However, the index shows continued, modest growth and marks the 13th straight month of expansion in... Show More
In case you've ever had any doubts that economics news can move the markets, just look at the mess created by errant reporting of ISM Manufacturing data. First the ISM release showed PMI at 53.2, well below expectations. Stocks basically tanked on the bad news. Then it became clear that... Show More
If you're in to economic data, then today's your day in the US. Multiple economics reports were released this morning, including industrial production, jobless claims, Empire Manufacturing, CPI, and several others. On the positive side, the May Empire State Manufacturing Survey showed significant gains for general business conditions, with an... Show More
Optimism over US economic growth remains strong after three meaningful economic reports were released today. Consumer spending jumped 0.9% last month, the largest gain since August 2009. What's more, personal incomes increased the most in seven months. Meanwhile, the ISM Manufacturing Index rose to 54.9, the strongest reading of the... Show More
Global manufacturing activity has been impacted by two temporary forces, namely the US weather and the global inventory cycle. Nevertheless, activity seems to have stabilised in China and is improving a touch in the US and Europe. The gains in the US are likely to strengthen in the months ahead... Show More
Today's ISM Manufacturing report casts another ray of sunshine on the US economy. March PMI climbed to 53.7%, a 0.5% increase from last month. Manufacturing has now been in expansion mode for 10 months in a row - definitely a strong sign for the economy. The Production Index component of... Show More
John Abernethy, CIO of Clime, says there are three reasons for deflationary pressures globally. Firstly, there is simultaneous money printing from a number of countries resulting in an offset of the desired inflationary outcome. Secondly, global underemployment is keeping a lid on labour and production costs. Thirdly and most significantly... Show More
US equities are up a small amount on a relatively slow day for the market. Perhaps Americans are going home early to celebrate Halloween, but there hasn't been a lot of action in the broad markets today. Regarding economic data, jobless claims dropped by 10,000 from the prior week -... Show More
Deutsche Bank summarises the state of the world economy in one chart - the investment bank has published a chart which shows the relative positions of the world's major economies based on the latest (August) PMI reports. Any country above the dotted line is improving at an accelerating pace. It... Show More
Boston Consulting Group has published findings that indicate the US manufacturing sector is only marginally more expensive than in China. This positions the US in a strong competitive position against both Europe and Japan as signs of a recovery in the US gain momentum. The rapid rise of the unconventional... Show More
China HSBC Manufacturing PMI declined to an 11-month low of 47.7 in July from 48.2 the previous month. This was in line with consensus estimates of 47.7 based on a Bloomberg poll of economists. The lower reading of the July HSBC Flash China Manufacturing PMI suggests a continuous slowdown in... Show More
Copper's woes: In China a person or business can pledge Copper as collateral for a loan. The Chinese Govt are aware that some borrowers are using the same collateral for different loans, so have put in moves to stop this (imagine just a few borrowers like that defaulting). Add to... Show More
Aitken sees new two speed economy emerging in Australia. With the falling AUD and decline in commodities demand from China, Aitken believes Victoria, NSW and QLD are well placed to benefit from a resurgence in swectors such as tourism, manufacturing and housing. He also outlines his investment thesis that short... Show More
The NZ manufacturing sector recorded its highest level of activity for almost nine years, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for May was 59.2 (a PMI reading above 50.0 indicates that manufacturing is generally expanding). This is the highest level... Show More