Growth in Europe’s manufacturing industry slowed last month and export demand fell to the lowest in seven months, adding to signs the economy is cooling after the second-quarter surge.
A gauge of manufacturing in the 16-nation euro region declined to 55.1 from 56.7 in the previous month, London-based Markit Economics said yesterday. That’s above an initial estimate of 55 released on Aug. 23.
It’s the 11th straight month with a reading above 50, indicating expansion.
An index of UK manufacturing also fell to 54.3 last month from a revised 56.9 the previous month, the lowest in nine months, the Chartered Institute of Purchasing and Supply and Markit Economics said in a statement in London yesterday.
While Europe’s economy grew at the fastest pace in four years in the second quarter, companies have been largely reliant on export demand to boost sales. Stocks in Europe and the US have dropped in the past two weeks on concern the global recovery is losing steam.
The recovery is “likely to remain bumpy and relatively gradual,” said Howard Archer, chief European and UK economist at Global Insight IHS in London.
“While still pointing to decent manufacturing growth, the softer survey reinforces suspicion that euro-zone manufacturers will find it increasingly difficult to sustain their impressive performance,” he said.
A measure of manufacturers’ new orders fell to the lowest this year, while the gauge of export orders declined for a fifth month, Markit said.
Employment increased for a fourth month, led by Germany, the Netherlands and Austria.
Germany’s manufacturing index slipped to 58.2 last month from 61.2 in July, matching an initial estimate, while the gauge for France rose to 55.1, higher than estimated. Italy’s measure fell to 52.8, lower than economists had forecast.
A composite index based on a survey of euro-area purchasing managers in both services and manufacturing probably fell to 56.1 last month from 56.7, while an index of euro-area services probably slipped to 55.6 from 55.8. Markit is scheduled to release final figures for those indicators tomorrow.
TYPHOON: The storm’s path indicates a high possibility of Krathon making landfall in Pingtung County, depending on when the storm turns north, the CWA said Typhoon Krathon is strengthening and is more likely to make landfall in Taiwan, the Central Weather Administration (CWA) said in a forecast released yesterday afternoon. As of 2pm yesterday, the CWA’s updated sea warning for Krathon showed that the storm was about 430km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point. It was moving in west-northwest at 9kph, with maximum sustained winds of 119kph and gusts of up to 155kph, CWA data showed. Krathon is expected to move further west before turning north tomorrow, CWA forecaster Wu Wan-hua (伍婉華) said. The CWA’s latest forecast and other countries’ projections of the storm’s path indicate a higher
SLOW-MOVING STORM: The typhoon has started moving north, but at a very slow pace, adding uncertainty to the extent of its impact on the nation Work and classes have been canceled across the nation today because of Typhoon Krathon, with residents in the south advised to brace for winds that could reach force 17 on the Beaufort scale as the Central Weather Administration (CWA) forecast that the storm would make landfall there. Force 17 wind with speeds of 56.1 to 61.2 meters per second, the highest number on the Beaufort scale, rarely occur and could cause serious damage. Krathon could be the second typhoon to land in southwestern Taiwan, following typhoon Elsie in 1996, CWA records showed. As of 8pm yesterday, the typhoon’s center was 180km
TYPHOON DAY: Taitung, Pingtung, Tainan, Chiayi, Hualien and Kaohsiung canceled work and classes today. The storm is to start moving north this afternoon The outer rim of Typhoon Krathon made landfall in Taitung County and the Hengchun Peninsula (恆春半島) at about noon yesterday, the Central Weather Administration (CWA) said, adding that the eye of the storm was expected to hit land tomorrow. The CWA at 2:30pm yesterday issued a land alert for Krathon after issuing a sea alert on Sunday. It also expanded the scope of the sea alert to include waters north of Taiwan Strait, in addition to its south, from the Bashi Channel to the Pratas Islands (Dongsha Islands, 東沙群島). As of 6pm yesterday, the typhoon’s center was 160km south of
STILL DANGEROUS: The typhoon was expected to weaken, but it would still maintain its structure, with high winds and heavy rain, the weather agency said One person had died amid heavy winds and rain brought by Typhoon Krathon, while 70 were injured and two people were unaccounted for, the Central Emergency Operation Center said yesterday, while work and classes have been canceled nationwide today for the second day. The Hualien County Fire Department said that a man in his 70s had fallen to his death at about 11am on Tuesday while trimming a tree at his home in Shoufeng Township (壽豐). Meanwhile, the Yunlin County Fire Department received a report of a person falling into the sea at about 1pm on Tuesday, but had to suspend search-and-rescue
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