Latest news with #factoryactivity
Bloomberg
5 days ago
- Business
- Bloomberg
New York Factory Activity Contracts While Outlook Improves
New York state factory activity shrank in June by more than projected as orders and shipments contracted, though expectations improved. The Federal Reserve Bank of New York's general business conditions index declined nearly 7 points to minus 16, marking a fourth straight month of contraction, data showed Monday. Readings below zero indicate contraction. The median forecast in a Bloomberg survey of economists called for a reading of minus 6.
Khaleej Times
03-06-2025
- Business
- Khaleej Times
China factory activity hits lowest since 2022, survey shows
Chinese factory activity hit a more than two-year low in May, a closely watched survey showed Tuesday, as a detente in Beijing's trade war with Washington was offset by ongoing domestic problems in the world's number two economy. China and the United States agreed last month to temporarily halt most tit-for-tat tariffs on each other's goods, providing some much-needed relief to global markets. But the standoff has still piled further pressure on China's economy, which already faced a long-running real-estate crisis, sluggish consumption and high levels of local government debt. The Caixin Purchasing Managers' Index, independently calculated by S&P Global and Chinese business outlet Caixin, fell to 48.3 in May, well below the 50-point threshold separating expansion from contraction. The figure was the lowest since September 2022 and well below the 50.4 seen in April. It was also sharply off the 50.7 forecast in a Bloomberg survey of economists. "The surprisingly sharp fall... means that the survey data now point to a loss of economic momentum last month," said Zichun Huang, China economist at Capital Economics. "Domestic headwinds (are) more than offsetting the boost from the US-China trade truce," she said. Wang Zhe, senior economist at Caixin Insight Group, said the slowdown was linked to "sluggish external demand, which fell for a second straight month". The country should target effective measures to boost domestic demand by improving household incomes, Wang added. Official data from the National Bureau of Statistics on Saturday showed a less severe contraction in the factory sector last month. While the NBS figure focuses on large state-owned industrial groups, the Caixin index primarily surveys small and medium-sized enterprises. But in a positive sign, a business sentiment survey by S&P Global and Caixin showed a slight improvement in May after a record drop in April, thanks to expectations of stronger foreign trade through the rest of the year.
Malay Mail
03-06-2025
- Business
- Malay Mail
Trade truce no lifeline as China's factory activity slumps to lowest since 2022
BEIJING, June 3 — Chinese factory activity hit a more than two-year low in May, a closely watched survey showed Tuesday, as a detente in Beijing's trade war with Washington was offset by ongoing domestic problems in the world's number two economy. China and the United States agreed last month to temporarily halt most tit-for-tat tariffs on each other's goods, providing some much-needed relief to global markets. But the standoff has still piled further pressure on China's economy, which already faced a long-running real-estate crisis, sluggish consumption and high levels of local government debt. The Caixin Purchasing Managers' Index, independently calculated by S&P Global and Chinese business outlet Caixin, fell to 48.3 in May, well below the 50-point threshold separating expansion from contraction. The figure was the lowest since September 2022 and well below the 50.4 seen in April. It was also sharply off the 50.7 forecast in a Bloomberg survey of economists. 'The surprisingly sharp fall... means that the survey data now point to a loss of economic momentum last month,' said Zichun Huang, China economist at Capital Economics. 'Domestic headwinds (are) more than offsetting the boost from the US-China trade truce,' she said. Wang Zhe, senior economist at Caixin Insight Group, said the slowdown was linked to 'sluggish external demand, which fell for a second straight month'. The country should target effective measures to boost domestic demand by improving household incomes, Wang added. Official data from the National Bureau of Statistics on Saturday showed a less severe contraction in the factory sector last month. While the NBS figure focuses on large state-owned industrial groups, the Caixin index primarily surveys small and medium-sized enterprises. But in a positive sign, a business sentiment survey by S&P Global and Caixin showed a slight improvement in May after a record drop in April, thanks to expectations of stronger foreign trade through the rest of the year. — AFP
Free Malaysia Today
03-06-2025
- Business
- Free Malaysia Today
Asian shares dither, dollar falls as trade angst persists
China's factory activity shrank in May for the first time in 8 months, signaling US tariffs are impacting manufacturers. (EPA Images pic) SINGAPORE : Asia shares edged cautiously higher on Tuesday while the dollar fell to a six-week low as erratic US trade policies clouded over markets and investors turned defensive ahead of key developments later in the week. US President Donald Trump and Chinese leader Xi Jinping will likely speak this week, White House press secretary Karoline Leavitt said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions. The call between the two leaders will be closely watched by markets to see if the tariff-induced blow to global stocks and the dollar this year could get some reprieve or ratchet up, as trade tensions between the world's two largest economies simmer. Data on Monday showed US manufacturing contracted for a third straight month in May and suppliers took the longest time in nearly three years to deliver inputs amid tariffs. 'The May ISM showed tariff pressure is beginning to bite for manufacturers who are seeing slowing activity, longer lead times and declining inventories,' said economists at Wells Fargo. China's factory activity in May also shrank for the first time in eight months, a private-sector survey showed on Tuesday, indicating US tariffs are starting to hurt manufacturers. The gloomy global trade situation left US futures falling early in the Asian session, failing to sustain the slight gains made during the cash session on Wall Street overnight. Nasdaq futures and S&P 500 futures were both down 0.2% each. In Europe, EUROSTOXX 50 futures advanced 0.28% and FTSE futures added 0.15%. MSCI's broadest index of Asia-Pacific shares outside Japan reversed early losses to last trade 0.6% higher, while Japan's Nikkei rose 0.66%. 'Trump really does have sentiment in the palm of his hands once again,' said Matt Simpson, senior market analyst at City Index. 'I suspect we'll hear about 'a really great call' or words to the effect,' he said, referring to the expected call between Trump and Xi. 'But we'll need to wait for confirmation from China, who tends to take their time on these matters. Until we get concrete confirmation, price action could be shaky and vulnerable to false breaks…we also have the June 4 deadline for 'best trade deals' from US trading partners to factor in.' In China, mainland markets returned from an extended break on a muted note, with the CSI300 blue-chip index up 0.23% while the Shanghai Composite Index gained 0.3%. Hong Kong's Hang Seng Index jumped more than 1%, rebounding from Monday's one-month low. Payrolls on deck The dollar fell to a six-week low against a basket of currencies to 98.58 on Tuesday, ahead of Friday's US nonfarm payrolls data, which will offer a timely reading on the pulse of activity in the world's largest economy. A rise in unemployment is one of the few developments that could get the Federal Reserve to start thinking of easing policy again, with investors having largely given up on a cut this month or next. The euro scaled a six-week top earlier in the session before paring some of its gains to last trade at US$1.1426, while sterling dipped 0.09% to US$1.3532. A softer US jobs report would be a relief for the Treasury market, where 30-year yields continue to flirt with the 5% barrier as investors demand a higher premium to offset the ever-expanding supply of debt. The senate this week will start considering a tax-and-spending bill that will add an estimated US$3.8 trillion to the federal government's US$36.2 trillion in debt. 'The evidence suggests term premium being re-priced considerably higher to account for US fiscal, trade, credit, and geoeconomic risks alongside some hedge against (US dollar) debasement,' said Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho. The dollar was up 0.35% against the yen at 143.20, reversing some of its 0.9% decline from the previous session. Bank of Japan Governor Kazuo Ueda said on Tuesday it is important to make policy judgements without any preset ideas as uncertainty over global tariff policies remains extremely high. In commodities, oil prices rose on concerns about supply, with Brent crude futures climbing 0.88% to US$65.20 a barrel, while US crude surged 1% to US$63.13 per barrel.
Bloomberg
02-06-2025
- Business
- Bloomberg
US Manufacturing Activity Contracted in May for a Fourth Month
US factory activity contracted in May for a fourth consecutive month and a gauge of imports fell to a 16-year low as firms pulled back in the face of higher tariffs. The Institute for Supply Management's manufacturing index edged down 0.2 point last month to 48.5, according to data released Monday. Readings below 50 indicate contraction.
