"Narrative Summit" Releases 2025 Recommendations to Cement Egypt's Position as a Global Tourism Destination    Egypt, S.Arabia step up trade ties through coordination council talks    Egypt reviews progress on $200m World Bank-funded waste management hub    Egypt urges Israel to accept Gaza deal amid intensifying fighting    Egypt, ADIB explore strategic partnership in digital healthcare, investment    SCZONE, Tokyo Metropolitan Government sign MoU on green hydrogen cooperation    Egypt welcomes international efforts for peace in Ukraine    Al-Sisi, Macron reaffirm strategic partnership, coordinate on Gaza crisis    Contact Reports Strong 1H-2025 on Financing, Insurance Gains    Egypt, India's BDR Group in talks to establish biologics, cancer drug facility    AUC graduates first cohort of film industry business certificate    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt to inaugurate Grand Egyptian Museum on 1 November    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Major economies end first quarter on weaker note
Published in Daily News Egypt on 01 - 04 - 2014

Reuters – Major economies in Asia and Europe finished the first quarter on a weaker note, with key manufacturing surveys fuelling expectations policymakers may be forced to act in coming months to prop up faltering growth.
Factories across Europe eased back on the throttle in March while China's vast manufacturing industry contracted for the third month, surveys showed, although a similar poll due later on Tuesday from the United States is expected to show a pick-up.
"The PMIs have given a steer on the Chinese economy for a while and it is looking like the People's Bank of China will take some action," said Philip Shaw at Investec.
"In the euro area they are tending to confirm that the recovery is taking place gradually, but that there is a broadening of the recovery."
Output again rose across the board in the euro zone, suggesting its recovery is becoming entrenched, but Markit's Purchasing Managers' Index (PMI) also revealed that factories were once more cutting prices.
The bloc's final manufacturing PMI came in at 53.0, matching an earlier flash reading but below February's 53.2, while the output price sub-index dropped below the 50 mark that separates growth from contraction for the first time since August.
Euro zone inflation fell to just 0.5% last month, its lowest since November 2009 and well below the European Central Bank's target of just below 2%.
The ECB is expected to keep monetary policy unchanged on Thursday despite calls for it to act to support growth. Olli Rehn, the EU's top economic official, added to that pressure on Tuesday, saying prolonged low inflation would make it harder to correct imbalances in the euro zone.
Unemployment in the bloc declined slightly in February, although it remained at 11.9%, the European statistics office Eurostat said on Tuesday.
Growth in British manufacturing unexpectedly eased to its slowest pace in eight months and prices paid by factories tumbled, giving the Bank of England scant reason to adjust its loose policy stance.
World stocks got off to a solid second-quarter start on Tuesday after reassuring noises from Federal Reserve Chair Janet Yellen while major currencies and bonds looked set for more cautious jockeying ahead of the ECB meeting and US jobs data.
In China, the final Markit/HSBC PMI gauge of factory activity fell to an eight-month low of 48.0 in March. It has remained below the 50 level since January.
The official survey, which is geared towards bigger, state-owned firms, showed a marginal increase to 50.3 from 50.2.
But economists warned that given seasonal patterns this was a sign of further weakness rather than improvement in the world's second-biggest economy.
"Overall, both March PMI readings further underpin the weak start to the year experienced by the Chinese economy. They also increase the pressure on the Chinese authorities to stimulate the economy," said Nikolaus Keis, an economist at UniCredit.
Investors are betting China will try to arrest the loss of momentum after what has shaped up to be its worst quarter in five years.
Last week, Premier Li Keqiang said Beijing had the necessary policies in place and would push ahead with infrastructure investment, after recent weak economic data and mounting signs of financial risks clouded the nation's outlook.
In Japan, the closely watched central bank tankan survey showed business sentiment barely improved in the three months to March and was set to sour this quarter following an increase in sales tax that took effect on Tuesday.
The tax increase is taking a bigger toll on corporate sentiment than the previous hike in 1997, highlighting the daunting challenge facing Prime Minister Shinzo Abe in his quest to shore up government revenues while rescuing the country from years of deflationary stagnation.
Big manufacturers and non-manufacturers in Japan expect conditions to worsen in the three months ahead, keeping alive expectations the Bank of Japan will boost its massive monetary stimulus to sustain recovery in the world's No. 3 economy.
Japan's Markit/JMMA Manufacturing PMI pulled back further from January's eight-year high as heavy snow in some areas curbed production.
"The chance of further BOJ easing may have risen a bit but the tankan alone won't be a trigger for action. The bank will probably wait to see more evidence on how much the tax hike actually hurts demand," said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute.
Factory PMI surveys for Asia's third and fifth-largest economies India and Indonesia also came in softer, with India's index still in growth territory, but Indonesia's hitting a seven-month low.

However, South Korea, Asia's fourth-largest economy and one of its leading manufacturing and export powerhouses, managed to buck the trend – its HSBC/Markit manufacturing gauge rose.


Clic here to read the story from its source.