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Canada's Ivey PMI shows activity expanding at a slower pace in November - Reuters News

Canada's Ivey PMI shows activity expanding at a slower pace in November - Reuters News

Canada's Ivey PMI shows activity expanding at a slower pace in November - Reuters News

TORONTO, Dec 7 (Reuters) - Canadian economic activity increased for the sixth straight month in November but the pace of expansion surprisingly slowed, Ivey Purchasing Managers Index (PMI) data showed on Monday.

The seasonally adjusted index fell to 52.7 from 54.5 in October. While it was the sixth straight month that the PMI was above the 50 threshold indicating an increase in activity, it fell short of analysts' expectations for 54.7.

Canada is in the middle of a second wave of the pandemic, leading to increased efforts by the 10 provinces to clamp down on businesses and curb gatherings.

The Ivey PMI measures the month to month variation in economic activity as indicated by a panel of purchasing managers in the public and private sectors from across Canada.

The gauge of employment fell to an adjusted 48.1 from 56.1 in October. It was the first month since May that employment was in contraction.

The supplier deliveries index slumped to 34.3, its lowest since April, from 44.8.

The unadjusted PMI fell to 52.4 from 55.9.

German industrial output surges on booming car sales - Reuters News

  • Industrial output up 3.2% in October
  • Higher than forecast of 1.6% increase
  • Car sales jump nearly 10% on the month

BERLIN, Dec 7 (Reuters) - Booming car sales drove a stronger-than-expected jump in German industrial output in October, in a further sign that the export-oriented manufacturing sector helped Europe's largest economy to get off to a solid start in the fourth quarter.

The German government has unleashed an unprecedented array of rescue and stimulus measures to help companies and consumers get through the COVID-19 pandemic as unscathed as possible, including incentives to buy electric and hybrid cars.

Industrial output was up by 3.2% on the month after an upwardly revised increase of 2.3% in the previous month, figures released by the Federal Statistics Office showed on Monday.

That was the biggest increase since June and easily beat a Reuters forecast for a rise of 1.6%.

Compared to February, the month before the COVID-19 pandemic reached Germany, industrial output was down by roughly 5%, the office said. In the car industry, Germany's biggest industrial sector, production rose by nearly 10% on the month but was still roughly 6% below pre-pandemic levels.

"Industry had a very good start into the final quarter of 2020. It's an extraordinarily strong increase," VP Bank economist Thomas Gitzel said.

The surprisingly bullish output figures chimed with data released on Friday that showed industrial orders rose more than expected on the month. (Full Story)

Sentiment surveys and high-frequency data such as truck toll mileage have also pointed to relatively strong manufacturing activity in November despite a partial lockdown imposed to slow a second wave of coronavirus infections. (Full Story)

The lockdown measures, which forced large parts of the services sector to close from Nov. 2, are clouding the outlook for the economy which is expected to stagnate or even shrink in the final three months of the year.

But the decline in gross domestic product in the fourth quarter is likely to be less pronounced than in neighbouring European countries thanks to the strong performance of the manufacturing sector, Gitzel added.

Looking further ahead, production expectations in the industrial sector have deteriorated for the coming months, with consumer-orientated industries in particular feeling gloomier about their prospects, the Ifo institute said on Monday.

"Even as industrial orders are pointing to a continuation of the recovery, the further development in manufacturing remains uncertain in light of the pandemic and the partial lockdown," the economy ministry said.

Germany's gross domestic product grew by a stronger-than-expected 8.5% quarter-on-quarter from July through September following an unprecedented 9.8% plunge in the second quarter due to the first wave of the COVID-19 pandemic.

UK house prices rise by most since 2016, Halifax says - Reuters News

LONDON, Dec 7 (Reuters) - British house prices showed their biggest annual rise since June 2016 last month, as people sought to move into bigger houses following the COVID lockdown earlier this year, mortgage lender Halifax said on Monday.

House prices in November were 7.6% higher than a year earlier, a slightly faster increase than October's 7.5% annual rise and the biggest increase since June 2016, just before Britain voted to leave the European Union.

Halifax said it did not expect the recent pace of price increases to last as the economic outlook was likely to remain challenging, even with the roll-out of coronavirus vaccines.

"With unemployment predicted to peak around the middle of next year, and the UK's economy not expected to fully recover the ground lost over 2020 for a number of years, a slowdown in housing market activity is likely over the next 12 months," Halifax managing director Russell Galley said.

Halifax said house prices rose by 1.2% in November alone, compared with a 0.9% increase in October, and that they had risen by 6.5% over the past five months, the most since 2004.

The Bank of England said last week that lenders approved the greatest number of mortgages in 13 years in October, and another mortgage lender, Nationwide, reported the biggest rise in prices in nearly six years at 6.5% for November. (Full Story) (Full Story)

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