banner

Ticker

* Cotações com atraso superior a 15 minutos via Bats CHI-X Europe e NASDAQ Basic

PATRIS MACRO - Italian Markit manufacturing PMI fell into contraction territory in October

2 Nov 2018

noticias/noticia3.jpg

Eurozone: October Markit Manufacturing PMI (final):

Key conclusions: The Markit manufacturing PMI for the euro was revised slightly downwards (from 52.1 to 52.0), which put the decline recorded in October in 1.2 points. This is the lowest reading since August 2016. The September/October average stands at 52.6 (vs. 4Q18 average of 54.3), suggesting that the slowdown of the eurozone manufacturing sector is continuing in 4Q18.

The country data showed Italy slipping into contraction territory, after registering its lowest PMI reading in just short of four years. Growth in Germany was the weakest in nearly two-and-a-half years, while France and Spain registered only modest expansion in manufacturing activity. Ireland, Austria, the Netherlands and Greece registered all slower rates of expansion in October.

The new orders sub-index posted the first value in contraction territory since November 2014 (although only marginally below 50).New export orders declined for the first time since mid-2013. The production sub-index fell to the lowest level since December 2014. Employment growth continued to slow, easing to the lowest level since December 2016. Input inflation accelerated in October, while output charges were raised (albeit at the lowest level in 14 months). Business confidence for the year ahead fell to the lowest level since the end of 2012.

Details:

Spain: The Markit manufacturing PMI rose 0.4 points in October to 51.8 (vs. consensus 50.9). The September/October average stands at 51.6, which compares to 3Q18 average of 52.4, suggesting that the manufacturing sector in Spain continues to lose momentum during the last quarter of the year.

According to the press release disclosed by Markit, output and new orders sub-indexes rose in October (although both remain lower than earlier in the year). Confidence regarding the future fell to the lowest level since June 2013 (on the back of the recent downturn in underlying demand, worries over global trade and political uncertainties). New export orders rose at the fastest pace since July, with the press release citing that a number of panelists reported an upturn in demand, especially from international clients. On the price front,output charge inflation accelerated to a three-month high, reflecting higher input prices.

Italy: The Markit manufacturing PMI fell by 0.8 points in October to 49.2 (vs. consensus 49.7). this is the first reading below 50 since August 2016. The September/October average stands at 49.6 (vs. 3Q18 average of 50.5), suggesting that the output for the Italian manufacturing sector could contract in 4Q18.

The details of the survey showed declines in both output and new orders. The decline in production was the third in successive months (with the sub-index reaching the lowest level in almost five-and-a-half years), as the downturn in order books gathered pace. New business from abroad also fell in October, after an almost six-year sequence of expansion. According to the press release disclosed by Markit, there were reports of weaker demand from key export partners, especially in Asia.

Other countries: The final Markit manufacturing PMI in France stood at 51.2, unchanged from the flash reading, and representing 1.3 points fall in October. In Germany, the PMI was slightly revised downwards (from 52.3 to 52.2), and is now 1.5 points below the September reading. Greece (-0.5 points to 53.1, the lowest reading since April), Ireland (-1.4 points to 54.9, to the lowest level since March), the Netherlands (-2.7 points to 57.1, the lowest level since January 2017) and Austria (-1.2 points to 53.8, the lowest reading since September 2016) all posted declines in October.

--------------------------------------------------------------------------------------------------------------------------------------------------------

For further information, or to receive the PDF file, please contact +351 912 897 835 or research@fincor.pt

Disclaimer

The information and opinion contained in this report was prepared by PATRIS - SOCIEDADE CORRETORA, SA ("Patris"), which is part of the group of companies whose holding is PATRIS INVESTIMENTOS, SGPS, SA (Patris Group), listed in Alternext, which holds 100% of the share capital and voting rights of REAL VIDA SEGUROS SA which, in turn, holds 100% of the share capital and voting rights of Patris.

The information contained herein is based on publicly available data obtained from sources believed to be reliable and has not been subject to independent verification. To the extent permitted by applicable law, Patris does not expressly or impliedly guarantee the accuracy, completeness and / or correctness of such data, or any omission. This document, or part thereof, may not be (i) modified, (ii) transmitted or distributed or (iii) copied or duplicated by any means or means, without the prior written consent of Patris.

The analysts involved in the preparation of this report did not receive, receive and will not receive any compensation, direct or indirect, based on the information contained in this report.

PATRIS - SOCIEDADE CORRETORA, SA or another company of the Patris Group or its respective shareholders, management, and / or employees may carry out personal transactions on the securities referred to in this report, at any time and without prior notice.

Any opinion contained in this report may be outdated as a result of changes in market conditions, applicable laws and other factors. It should also be considered that the analyst may make changes to the estimates, assumptions and evaluation methodology used.

This report has been prepared for information purposes only, not taking into account the specific investment goals, financial situation and particular needs of any specific person who may receive the report. This report therefore has no specific recipient.

Patris is subject to high internal standards of behavior associated with the capital market, prepared on the basis of the applicable legislation of the Portuguese State and the European Union, which include rules to prevent and avoid conflicts of interest and barriers to the disclosure of information.

Investors should bear in mind that the rate of return on the securities identified in this report - if any reference is made to those returns - may vary and the price of such securities may rise or fall. Investors should thus be aware that they may receive less than initially invested. While this report may refer to the historical performance of securities, past performance is no guarantee of future performance. In addition, market conditions, applicable laws and other factors that have an effect on performance are all likely to change, with the consequent change in the information contained in this report. Patris or any other company of the Patris Group does not accept, to the extent permitted by applicable law, any liability, whether direct or indirect, resulting from losses that may arise due to the use of the information contained in this report.

Patris's activity is overseen by the Bank of Portugal and the Securities Market Commission. 

Voltar