Connect with us

Economy

German Manufacturing Sector Recorded Growth in December

Published

on

German manufacturing

December PMI edges lower, but still rounds off best quarter in one-and-ahalf years, according to Markit Economics report.

Key points:

Flash Germany Composite Output Index(1) at 54.9 (55.2 in November), 2-month low.

Flash Germany Services Activity Index(2) at 55.4 (55.6 in November), 2-month low.

Flash Germany Manufacturing PMI(3) at 53.0 (52.9 in November), 4-month high.

Flash Germany Manufacturing Output Index(4) at 54.0 (54.2 in November), 2-month low.

Private sector companies in Germany enjoyed another month of solid output growth in December, as highlighted by the Markit Flash Germany Composite Output Index remaining comfortably above the crucial 50.0 threshold. Despite falling from November’s eight-month high of 55.2 to 54.9, the average PMI reading for the fourth quarter as a whole is the best since Q2 2014. Output growth slowed fractionally at both manufacturers and service providers.

Mirroring the trend for activity, new business placed with German private sector firms also increased at a slightly weaker rate in December. Nevertheless, the rate of growth in new work was one of the strongest over the past four-and-a-half years. Anecdotal evidence partly attributed the latest rise in new orders to the introduction of new products and improved demand from both the domestic and foreign markets. Indeed, German manufacturers reported a fifth successive monthly increase in new export orders, with the pace of expansion little-changed from November’s 21- month record.

German manufacturing (private sector) companies raised their staffing levels further in December. Moreover, the rate of job creation was the most marked in four years, which panellists linked to strong demand and planned expansions. Employment growth was particularly strong in the service sector.

The latest increase in workforce numbers was insufficient to relieve pressure on operating capacity, however. This was highlighted by a further rise business outstanding. The rate at which backlogs of work accumulated was equal to September’s 52-month record. Input cost inflation in Germany’s private sector remained subdued in December, with latest data signalling only a fractional rise in input prices. A further sharp fall at manufacturers (linked to lower prices for energy, oil and some raw materials) contrasted with a moderate rise at service providers.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

COVID-19 Vaccine: Crude Oil Extends Gain to $48 Per Barrel on Wednesday

Published

on

oil 1

Oil prices rose further on Wednesday as hope for an effective COVID-19 vaccine and the news that the United States of America’s President-elect, Joe Biden has begun transition to the White House bolstered crude oil demand.

Brent crude oil, a Nigerian type of oil, gained 1.63 percent or 78 cents to $48.64 per barrel at 11:50 am Nigerian time on Wednesday.

The United States West Texas Intermediate (WTI) crude oil rose by 1.36 percent or 61 cents to $45.52 per barrel.

OPEC Basket surged the most in terms of gain, adding 3.16 percent or $1.37 to $44.75 per barrel.

This was after AstraZeneca, Moderna and Pfizer-BioNTech announced the positive results of their trials.

Moderna and Pfizer had claimed over 90 percent effective rate in trials while AstraZeneca said its COVID-19 vaccine was 70 percent effective in trials but could hit 90 percent going forward.

The possibility of having a vaccine next year increases the odds that we’re going to see demand return in the new year,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.

Also, the decision of President-elect Joe Biden to bring Janet Yellen, the former Chair of Federal Reserve, back as a Treasury Secretary of the United States is fueling demand and strong confidence across global financial markets.

President-elect Biden’s cabinet choices, particularly Janet Yellen’s Treasury Secretary position, are adding to upside momentum across a broad space of asset classes,” said Jim Ritterbusch of Ritterbusch and Associates.

Continue Reading

Economy

Seyi Makinde Proposes N266.6 Billion Budget for Oyo State in 2021

Published

on

The Executive Governor of Oyo State, Seyi Makinde, has presented the Oyo State Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly on Monday.

The proposed budget titled “Budget of Continued Consolidation” was said to be prepared with input from stakeholders in all seven geopolitical zones of Oyo state.

Governor Makinde disclosed this via his official Twitter handle @seyiamakinde.

According to the governor, the proposed recurrent expenditure stood at N136,262,990,009.41 while the proposed capital expenditure was N130,381,283,295.63. Bringing the total proposed budget to N266,6444,273,305.04.

The administration aimed to implement at least 70 percent of the proposed budget if approved.

He said “The total budgeted sum is ₦266,644,273,305.04. The Recurrent Expenditure is ₦136,262,990,009.41 while the Capital Expenditure is ₦130,381,283,295.63. We are again, aiming for at least 70% implementation of the budget.”

He added that “It was my honour to present the Oyo State Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly, today. This Budget of Continued Consolidation was prepared with input from stakeholders in all seven geopolitical zones of our state.”

Continue Reading

Economy

World Bank Expects Nigeria’s Per Capita Income to Dip to 40 Years Low in 2020

Published

on

world bank

The World Bank has raised concern about Nigeria’s rising debt service cost, saying it could incapacitate the nation from necessary infrastructure development and growth.

The multilateral financial institution said the nation’s per capita income could plunge to 40 years low in 2020.

According to Mr. Shubham Chaudhuri, Country Director for World Bank in Nigeria, the decline in global oil prices had impacted government finances, remittances from the diaspora and the balance of payments.

Chaudhuri, who spoke during the 26th Nigerian Economic Summit organised by the Nigerian Economic Summit Group and the Federal Government, said while the nation’s debt is between 20 to 30 percent, rising debt service remains the bane of its numerous financial issues and growth.

Nigeria’s problem is that the debt service takes a big part of the government revenue,” he said.

He said, “Crisis like this is often what it takes to bring a nation together to have that consensus within the political, business, government, military, civil society to say, ‘We have to do something that departs from business as usual.’

“And for Nigeria, this is a critical juncture. With the contraction in GDP that could happen this year, Nigeria’s per capita income could be around what it was in 1980 – four decades ago.”

Nigeria’s per capita income stood at $847.40 in 1980, according to data from the World Bank. It rose to $3,222.69 in 2014 before falling to $2,229.9 in 2019.

Continue Reading

Trending