Uneven Start to 2023 as Some, but Not All, Countries Observe Holiday
January 2, 2023
Although the most widely observed holiday closure of the calendar year, New Year’s Day in 2023 fell on a Sunday. The holiday has been extended to Monday in many countries, including the United States, Great Britain, Russia, Switzerland, South Africa, Nigeria and much of Africa, Serbia, Romania, Slovenia, Ireland, Lebanon, Slovakia, Bulgaria, Romania, Japan, Hong Kong, Australia, China, Taiwan, New Zealand, Malaysia, Singapore, Canada, Thailand, Vietnam, the Philippines and much of South America.
Quite a few manufacturing purchasing manager surveys were reported, nonetheless, and there’s even one scheduled monetary policy review, that being in Israel.
The dollar has slipped 0.5% against the yen but rose 0.3% relative to sterling, 0.2% against the euro and Canadian dollar, and 0.1% versus the Australian dollar and Mexican peso. The Swiss franc is holding steady.
The 10-year German bund yield fell back 12 basis points.
Share prices so far today have risen 1.5% in France and Italy, 1.4% in Italy, 0.9% in Germany and 0.5% in India but closed 0.5% lower in South Korea.
Euroland’s factory purchasing managers index rose 0.7 points to a 3-month high of 47.8, matching the preliminary estimate. Production and demand fell more slowly, but an unintended rise of inventories continued in spite of lessening supply-side constrictions. Input price inflation slowed to about a 2-year low, and business sentiment ended 2022 on an improving note. Every month in the second half of 2022 experienced a contraction of manufacturing activity, i.e. a sub-50 PMI reading.
Within the euro area, reported PMI readings ranged from a 3-month high of 46.4 in Spain to a 4-month high in France of 49.2. That’s a comparatively tight shot group of observations. Germany’s score of 47.1 represented a downward revision from a preliminary estimate of 47.4 but an improvement on October’s 29-month low of 45.1.
Government-compiled Chinese purchasing manager survey results revealed 34-month lows of 47.0 in manufacturing, 41.6 in non-manufacturing, and 42.6 in the composite PMI for December.
Indonesia’s manufacturing PMI bounced above November’s 5-month low of 50.3 to a reading of 50.9 in the final month of 2022. Indonesian consumer price figures also got reported on this first business day of 2023. December experienced the biggest monthly advance since September, and the on-year inflation rate rose from a 3-month low in November to a 2-month high of 5.51% in December. Indonesian inflation remains near September’s 71-month high of 5.95%, and core inflation rose last month to a near six-year peak.
South Korea‘s manufacturing purchasing managers index printed at a 2-month low of 48.8 and was the sixth sub-50 reading in a row.
India’s PMI improved further to a 26-month high of 57.8 and also showed lessening inflation pressure.
Sweden‘s manufacturing PMI matched November’s 30-month low of 45.9, and the Norwegian PMI fell 1.1 index points to a 28-month low last month of 50.0.
Hungary’s PMI leaped 7.1 index points to a one-year high of 63.1. The Polish and Czech PMI readings of 45.6 and 42.6 were at 7- and 3-month highs.
Turkey’s manufacturing PMI swung from a 30-month low of 45.7 in November to a 6-month high of 48.1 last month. The Turkish trade deficit of $10.4 billion last month was the largest in four months, bring the 2022 deficit to $110 billion compared to a shortfall of $46 billion in 2021.
Portuguese consumer confidence fell more deeply into negative territory and, at -38.1, represented the most pessimism in 112 months.
Pakistani consumer price inflation of 24.5% in December was the most since October’s level and not far beneath August’s 567-month peak of 27.3%. Wholesale price inflation punched in at 27.1% in December.
Copyright 2023, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: countries with closed financial markets today, manufacturing purchasing manager surveys
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