Sharp rise in orders boosts stock markets

飞雪寒冰

Manufacturers around the world are at their most optimistic for almost four years after booking a sharp rise in new orders in December as Asia's recovery spread to the US and Europe,

Surveys of purchasing managers from China to Europe and the US in the final month of 2009 released yesterday exceeded expectations, sending stock markets higher in advanced economies.

Across the world, the combined scores of national purchasing managers' indices, compiled by JP Morgan, rose to 55 in December, the highest since April 2006 with the index for new orders at a 5½ year high.

Manufacturers' intentions on employment rose above 50 for the first time since March 2008, signalling that the brutal shake-out of factory jobs over the past two years is coming to an end.

飞雪寒冰

The surveys have long been good predictors of manufacturing output, the most volatile part of the economy.

Although there were a few pockets of gloom, notably Australia and Spain, the strength of Asia's recovery was underlined by sharply better sentiment in China and India, and steady improvements in South Korea and Taiwan.

But brighter prospects were also recorded in the US, UK and the eurozone. The US Institute of Supply Management manufacturing report stood at 55.9 in December, its highest since April 2006.

Norbert Ore, chairman of the ISM, said: “The sector may be benefiting from an excessive destocking cycle. ”

UK manufacturers, where official data is yet to show a recovery, surprised analysts with their resilience, with the PMI index rising from 51.8 in November to 54.1 in December.