Canadian manufacturing growth improves in September


The British pound weakened against other major currencies in the European session on Monday after data showed that the United Kingdom manufacturing sector continued to expand in September, albeit at a slower pace compared to August.

The index indicated strong growth in the sector's output - any figure above 50 denotes growth - but was shy of expectations of 56.4, and well down on last month's 56.9.

- Production contracted marginally in September after having increased in August for the first time in three months.

The Việt Nam Manufacturing Purchasing Managers' Index (PMI) rose in September, with faster rises in output, new orders and employment on the back of stronger customer demand.

Meanwhile, the pace of job creation eased to the weakest since October 2016.

Latest price data showed another round of input cost rises in September.

Positive outlook Confidence in United Kingdom manufacturing is also high, with over 51 percent of manufacturing companies surveyed expecting further growth in production over the next 12 months.

This combined with a report from law firm Baker McKenzie suggesting that Britain's manufacturers could lose up to £17bn a year in the event of a "hard Brexit" has led to investors fleeing the Pound at the start of the week. Sales have increased to Europe, China, the USA and South America.

"This will depend on factors such as actual fulfilment and value of orders, as well as cost pressures faced by businesses".

Growth of new export business remained among the best over the past six years, with increased sales to Europe, the USA, China and Brazil.

IHS Markit said that production and new orders were both rising at above average rates.

The Australian Dollar Pound (AUD GBP) exchange rate advanced at the start of this week's session as Sterling was undermined by a weak Manufacturing PMI. "We expect this to continue in the coming months".

Optimism is still relatively strong, with more than 51% of firms expecting production to rise over the coming year, reflecting global expansion efforts, efficiency drives and fresh investment plans. Respondents also reported a rare spike in exports of construction-related products for emergency relief and reconstruction in the USA following recent hurricane damage.

"This appears to be reflected in the latest PMI, which, while moderately below August's result, still shows UK Manufacturing to be performing strongly".