Manufacturing expansion in Eurozone slumps to 30-month low
The manufacturing sector’s growth rate in the Eurozone hit a 30-month low in November, according to a flash purchasing managers’ index (PMI) from IHS Markit last weekend. According to the reading, based on 85% of usual monthly replies, manufacturing PMI fell to 51.5 points in November, the lowest level seen since May 2016 and down from 52.0 points in October.
Responses pointed towards subdued global demand, rising political and economic uncertainty, trade wars and especially sluggish car sales as the drivers behind the slower growth. The sector also posted a decrease in new orders for the second month running and the sharpest fall in work-in-hand since January 2015, while employment growth stood at a 26-month low.
Germany was a key area of concern, with business activity slowing to a near four-year low, while manufacturing output remained stagnant, its weakest performance since April 2013.
UK petrochemicals braces for multiple Brexit scenarios
In more than two years after the Brexit vote and less than four months before the UK is set to quit the European Union, one word continuously makes the rounds post-Brexit – uncertainty.
However, lack of clarity over Brexit weighed on the value of the pound sterling and confusion on long-term trade agreements has made it difficult for businesses to plan firm strategies beyond 29 March 2018. The petrochemical industry is not an exception given that in EU it is the most important trading partner for chemicals, accounting for 60% of UK chemical industry exports and 75% of imports.
British companies are currently preparing themselves against the various scenarios likely to unfold in the final months before the UK officially breaks away.
