by Edward Hugh: Barcelonabr /br /Global manufacturing took another step towards growth in June - but the process was, as ever, uneven. The JPMorgan Global Manufacturing PMI posted 46.9, its highest reading since last August. The current output component even expanded slightly following a year-long period of contraction. The PMI has now remained below the neutral 50.0 mark for thirteen successive months.br /br /The principal factors weighing down on the level of the PMI in June were declines in new orders, employment and inventories. However, rates of contraction in new work and employment eased to their weakest for thirteen and eight months respectively. Looking ahead, the new orders to inventories ratio – which tends to move in advance of the production cycle – rose for the sixth month running to its highest since April 2004. Only 4 PMIs - those for China, India, Turkey and Sweden posted growth readings in ...

The base metals were little changed on Wednesday. Copper held up well through mid-morning, but declined when it counted, slipping to near its pre-dawn intraday low and finishing at $1.4922/lb., down a penny.

Nickel also experienced a late-day letdown, but not enough to bleed red as it closed at $5.214/lb., up 2 1/3 cents. Zinc had a modestly positive day, ending at $0.5244/lb., up three-quarters of a cent. Aluminum was steadily higher through most of the day, adding more than a penny to $0.6228/lb., while lead also edged higher, tacking on a penny at $0.5305/lb.

Copper was only a little bit off its highs on Wednesday, as reports of increased Chinese buying and general optimism kept the metal buoyed for a second straight day.

The metal responded positively to reports that China has started buying copper from domestic bonded warehouses and overseas markets, in a move expected to triple its state reserves to

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Production at China's manufacturing plants fell sharply in November. The China Federation of Logistics and Purchasing reported that its a title=pmi target=_blank href=http://www.google.com/hostednews/ap/article/ALeqM5j1FZRNA_nf7XY7YePH-Od-tdunFAD94PRQV80purchasing managers index plunged /ato 38.8 from last month's 44.6 and the lowest level since the survey started in 2005.brbr

China’s manufacturing shrank by the most on record and export orders plunged, providing more evidence that recessions in the U.S., Europe and Japan are sharply slowing what was previously the world’s fastest-growing major economy. The Purchasing Managers’ Index fell to a seasonally adjusted 38.8 in November from 44.6 in October, according to the China Federation of Logistics and Purchasing. The output index fell to 35.5 from 44.3, while the index of new orders dropped to 32.3 from 41.7. On these indexes any reading below 50 means contraction, and as can be seen in the chart below, China's manufacturing industry has now been contracting (month on month) in four of the last five months. The November reading stands out though, since the magnitude of the contraction has accelerated sharply.br /br /br /br /a href="http://1.bp.blogspot.com/_ngczZkrw340/STPmXoANkEI/AAAAAAAALmM/yVbTMtTuh7M/s1600-h/china+PMI.png"img id="BLOGGER_PHOTO_ID_5274812882130669634" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 320px; CURSOR: hand; HEIGHT: 190px; TEXT-ALIGN: center" alt="" ...

by Edward Hugh: Barcelona India is in the middle of a storm at the moment, there can be no doubt about that. But the important point to note is that this storm is not of India's making. The financial turmoil in a number of key developed economies, and above all the United States, is sending shock waves across the global economy, and as is normal, when the earth trembles, it is the most fragile who notice it most. India's economy may be fragile in the sense that it is very vulnerable to what is colloqially known as global risk sentiment, but it is not fragile in terms of being susceptible to having its growth trajectory knocked completely off course. India may be shaken, but her economy will not be broken. Emerging Market Bonds Emerging-market bonds had their worst week in four years this week as the deepening credit crisis raised global recession concerns ...

by Edward Hugh: BarcelonaIndia is in the middle of a storm at the moment, there can be no doubt about that. But the important point to note is that this storm is not of India's making. The financial turmoil in a number of key developed economies, and above all the United States, is sending shock waves across the global economy, and as is normal, when the earth trembles, it is the most fragile who notice it most. India's economy may be fragile in the sense that it is very vulnerable to what is colloqially known as global risk sentiment, but it is not fragile in terms of being susceptible to having its growth trajectory knocked completely off course. India may be shaken, but her economy will not be broken.Emerging Market BondsEmerging-market bonds had their worst week in four years this week as the deepening ...

Manufacturing in China contracted - on a seasonally adjusted basis - for the first time in many years in July as export demand faltered and factories closed to clear the air before the Olympic Games. The Manufacturing Purchasing Managers' Index - prepared by the China Federation of Logistics and Purchasing - fell to a seasonally adjusted 48.4 in July from 52 in June. Any reading below 50 represents contratction, and this was the first such reading since the survey began in 2005.The output index fell to 47.4 in July from 54.2 in June, while the index of new orders dropped to 46.2 from 52.6. The index of export orders declined to 46.7 from 50.2. None of this is really too surprising, as it is hard to see how you can maintain 20% plus export growth as all your main ...

China's manufacturing expanded in June at the slowest pace since August 2005 as the growth in export orders weakened for a third month, according to a purchasing managers survey. The Purchasing Managers' Index produced by the China Federation of Logistics and Purchasing fell to 52 from 53.3 in May.The index of new export orders declined to 50.2 from 53.4. A reading above 50 reflects an expansion, below 50 a contraction. Those for new orders and output also fell, while the input-price index climbed to a record, underscoring the threat to manufacturing from higher costs for labor and raw materials. In the first five months, 2,331 shoemakers closed in Guangdong province, the world's largest footwear production center,according to the China customs bureau yesterday. The principle causes appear to be rising wages and appreciation in the yuan that has eaten into ...

China's manufacturing growth slowed in May according to two different measures which are published monthly.Growth slowed from the fastest pace in four years according to a survey of purchasing managers by CLSA Asia-Pacific Markets. The CLSA China Purchasing Managers' Index fell to a seasonally adjusted 54.7 from 55.4 in April.The CLSA index, started in April 2004, is based on a survey of more than 400 manufacturing companies. The survey tracks changes in output, new orders, export orders, employment, inventories, input costs and output prices. A reading above 50 shows an expansion in business activity, below 50 a contraction.The output index dropped to 56.7 in May from 57.9 in April, while the index of new orders fell to 57.3 from 58.6. The export orders index in the CLSA survey rose to 52.2, a four-month high, from 52.At the same time the Purchasing Managers' ...

China's manufacturing activity bounced back strongly again in March following disruptions in February from some of the worst snowstorms in half a century, according to the findings of two surveys published today. The CLSA Purchasing Managers' Index rose to 54.4, the highest level in five months, from 52.8 in February, while a separate PMI report, published jointly by the China Federation of Logistics and Purchasing and the statistics bureau, registered its highest reading in almost a year. The CLSA index is based on replies to questionnaires sent to purchasing executives at more than 400 industrial companies. The survey tracks changes in output, new orders, employment, prices, inventories and delivery times. The data is seasonally adjusted. A reading over 50 indicates expansion. The output index rose to 55.6 in March from 53.2 in February, while the index of new orders climbed to 57.8 from 55.1. The index ...