INTERNATIONAL
Textile Raw Material Price 2016-08-23
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1017.12 |
USD/Ton |
-0.29% |
8/23/2016 |
|
VSF |
2438.40 |
USD/Ton |
0% |
8/23/2016 |
|
ASF |
1893.02 |
USD/Ton |
0% |
8/23/2016 |
|
Polyester POY |
1044.92 |
USD/Ton |
0% |
8/23/2016 |
|
Nylon FDY |
2343.74 |
USD/Ton |
0% |
8/23/2016 |
|
40D Spandex |
4387.01 |
USD/Ton |
0% |
8/23/2016 |
|
Nylon DTY |
1998.19 |
USD/Ton |
0% |
8/23/2016 |
|
Viscose Long Filament |
2065.80 |
USD/Ton |
0% |
8/23/2016 |
|
Polyester DTY |
1156.85 |
USD/Ton |
0.39% |
8/23/2016 |
|
Nylon POY |
2561.59 |
USD/Ton |
0.29% |
8/23/2016 |
|
Acrylic Top 3D |
5615.97 |
USD/Ton |
0% |
8/23/2016 |
|
Polyester FDY |
1290.56 |
USD/Ton |
0% |
8/23/2016 |
|
30S Spun Rayon Yarn |
3019.82 |
USD/Ton |
0% |
8/23/2016 |
|
32S Polyester Yarn |
1742.78 |
USD/Ton |
0% |
8/23/2016 |
|
45S T/C Yarn |
2411.35 |
USD/Ton |
0% |
8/23/2016 |
|
45S Polyester Yarn |
3170.06 |
USD/Ton |
0% |
8/23/2016 |
|
T/C Yarn 65/35 32S |
2388.82 |
USD/Ton |
0% |
8/23/2016 |
|
40S Rayon Yarn |
1923.07 |
USD/Ton |
0% |
8/23/2016 |
|
T/R Yarn 65/35 32S |
2283.65 |
USD/Ton |
0% |
8/23/2016 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
0% |
8/23/2016 |
|
32S Twill Fabric |
0.84 |
USD/Meter |
-0.18% |
8/23/2016 |
|
40S Combed Poplin |
1.19 |
USD/Meter |
0% |
8/23/2016 |
|
30S Rayon Fabric |
0.70 |
USD/Meter |
0% |
8/23/2016 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
-6.08% |
8/23/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15024 USD dtd 23/08/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
While demand in the global market across sectors remains muted amid a slowdown, India's textile sector managed to grow approximately 1% in FY16. While this may be termed as modest at best, it stands out in comparison to a 5% slump in the global textile market in the same period. A report from ICRA Research said, this muted growth needs to be looked at in conjunction with lower fibre prices in FY2016, adjusted for which the growth in India’s apparel export quantity is estimated at 3-4%. "While this growth is modest compared to healthy growth clocked in the recent years, the growth quantum looks satisfactory in the backdrop of 5% decline in import quantity of Europe and 6% increase in import quantity of the US, though weak when compared with Bangladesh and Vietnam", the report said. India overtook Germany in 2015 to become the fifth largest apparel exporter after China, Bangladesh, Italy, and Vietnam. India has a marginal share of 4% in global apparel trade.
In contrast to the apparel exporters, the domestic players continued to post steady revenue growth in FY16, albeit it was moderate compared to the healthy growth seen in FY2012 and FY2013. In its report, Icra considered 13 apparel manufacturers. Their aggregate revenues increased by a modest 7% in FY2016 compared to 8% in FY2015, 9% in FY2014 and 12% in FY2013, reflecting a slowdown in the domestic consumption too. In the fabrics sector, ICRA pointed fabric production in the country remained flat in FY16 with total production of 65.6 billion square meters, 2% lower than the agency's expectations. "Despite the volatility in cotton prices as also the spread between cotton yarn and texturized filament yarn, the share of cotton fabric in India’s total fabric production has demonstrated a secular growth over the years, including during FY2016", the report said. The aggregate revenues of 10 large fabric manufacturers grew by 6% in FY2016 as against a revenue growth of 9% in FY2015, 22% in FY2014 and 21% in FY2013. The slowdown in pace of growth of revenues can be attributed to tepid industry-wide volume growth and lower prices of key inputs, i.e. yarn on account of lower fiber prices, the report added.
SOURCE: The Zee Business
On the back of capacity expansion and enlarging domestic business, Indian home textiles producer and exporter, Indo Count Industries Ltd (ICIL) has forecast a 15-20 per cent growth in fiscal 2017. This includes returns from investments in capacity expansion to establish a high-end brand in the domestic market. It clocked Rs 2,213 crore sales in fiscal 2016. Indo Count derives 90 per cent of its revenues from exports and ships to countries like Australia, South Africa, etc, also plans to expand and strengthen its export markets. "We have also invested in capacity expansion to establish our brand – Boutique Living - in the domestic market. Following these developments we are expecting 15-20 per cent revenue growth in fiscal 2017," ICIL MD Mohit Jain told a news agency. The company which clocked sales at Rs 2,213 crore in fiscal 2016, recently launched 'Boutique Living', a home textiles range in India which caters to the high-end and premium segment. Indo Count, with three production units in Kolhapur in Maharashtra, is spending around Rs 475 crore in two phases on capacity expansion.
SOURCE: Fibre2fashion
The ideal Goods and Services Tax (GST) rate should be around 18 per cent, Naushad Forbes, President, Confederation of Indian Industry (CII), said here on Tuesday. Calling it a “revenue neutral rate”, Forbes pointed out that an 18 per cent rate will lead to “neither an increase nor a decrease” in taxes; immediate inflationary pressures on the economy are also not forseen (at that rate). The rate is not “so high to damage the market” (for demand of goods). Considered to be the country’s biggest ever indirect tax reform, the GST framework has already been passed by Parliament. “A max rate of around 18 per cent would be fine. Beyond that, the first thing it will hit is demand. Supposing you had 22-23 per cent, it will directly hit demand. If you suddenly end up paying 5-8 (percentage point) more, then the immediate effect is you consume less,” Forbes reasoned. In the long-run, a revenue neutral rate of GST will help bring in buoyancy and lead to widening of the tax net and increased collections.
Implementation of GST
Forbes pointed out that apart from the rate, the next most important step will be to ensure seamless implementation of GST. This requires clarity on several aspects, as well as aligning the various IT and other tax assessment / collection mechanisms of the Centre, States and companies together. “The States passing the GST will not be an issue. But, seeing that the State government and Central government systems are in place, and the company IT systems should also be in place for all this tracking to take place and doing it all in a national unified way,” he told reporters during an interaction. For smooth working of the GST regime, Forbes said it has to be ensured that the States are on the same page at least in terms of systems and procedures. For example, there should be a common GST form and not different ones across States. “A common tax is okay. But you (States) can’t have your own form. If you have that, then there will be 29 different forms in 29 different States. That defeats the whole purpose.” he reiterated. The CII President also pointed out that clarifications regarding “deemed export sops” are awaited. “Some of the export sops that people are talking about are not exactly export sops; but rather deemed export sops. But I think they are working out in detail. The rules are still not clear,” Forbes said.
SOURCE: The Hindu Business Line
Good monsoon rains could push up economic growth to 7.8 per cent this fiscal, India Ratings said on Tuesday but warned that a slow recovery in investments is hindering faster growth. “The upward revision has been prompted by the progress of monsoon and the sowing of kharif crops so far,” it said in its Economic Outlook for 2016-17. It had earlier pegged GDP growth at 7.7 per cent this fiscal. Finance Minister Arun Jaitley had expressed hope that the economy could grow at eight per cent this fiscal on the back of good monsoon rains. Meanwhile, India Ratings also expects a pick-up in consumption demand, which is likely to grow at 8.4 per cent this fiscal, on the basis of favourable monsoon as well as the Seventh Central Pay Commission payout. However, industrial growth at 7.2 per cent in 2016-17 will still be lower than the 7.4 per cent witnessed as against last fiscal. “The key factor that is holding the acceleration of industrial growth is investment recovery,” it said, noting that though the government has taken several initiatives such as to encourage manufacturing and solve power sector problems, “it has failed to rekindle the animal spirit” in the economy. Meanwhile, it pegged the wholesale price index based inflation at 3.3 per cent and consumer price index based inflation at five per cent this fiscal. Despite the slightly rusty fiscal arithmetic, it said the Centre will also achieve its fiscal deficit target of 3.5 per cent of the GDP this fiscal.
SOURCE: The Hindu Business Line
India's burgeoning labour force can only be absorbed in the manufacturing sector and not in services or technology-based industries, as some policymakers have suggested, a group of experts said. The experts, who participated in a meeting with the NITI Aayog on its 15-year vision document, were also of the view that the country won't be able to realise its ambitious Digital India dream unless it improved and expanded its optical fibre network. The meeting was attended by Anand Mahindra, chairman of Mahindra Group; Shikha Sharma, MD and CEO of Axis Bank; Ajith Balakrishnan, founder of rediff.com; Bhavish Agarwal of Ola Cabs; Nachiketa Mor, India country director for Bill and Melinda Gates Foundation; and Rana Hasan from Asian Development Bank. The NITI Aayog was represented by Vice-Chairman Arvind Panagariya, Chief Executive Officer Amitabh Kant and other officials.
Officials said the ideas and views generated in the meeting would form part of the Aayog's 15-year vision document, which would come out in the next few months. The second document, a 7-year strategic paper, is now expected to become part of the broader vision document itself. The meeting was organised by McKinsey Global Institute, which is an arm of global consultancy firm McKinsey Ltd. Officials said the meeting also discussed the technological innovations and advancements which would happen in the next 15 years and how could India make use of these. As part of its process on framing the 15-year vision document that has replaced the five-year plans, the NITI Aayog is holding a series of meetings with industry players, experts, policymakers, academicians, etc.
SOURCE: The Business Standard
The rupee recovered from a one-month low to close 13 paise higher at 67.06 a dollar on the back of selling of the US currency by banks and exporters. Dollar weakness in overseas markets along with continued optimismover capital inflows predominantly boosted the rupee value, dealers said. Unwinding of long dollar positions by banks too aided the sentiment, they added. The domestic currency had closed at one-month low of 67.19 against US currency on Monday amid fears of rate hike by the US Federal Reserve.
SOURCE: The Hindu Business Line
India is considering sweetening its offers for countries, including China and Japan, for liberalisation in goods trade at the 16-nation Regional Comprehensive Economic Partnership (RCEP), provided it is assured of commensurate pledges from others in services trade and investment. At the latest round of negotiations in Vietnam last week, India is learnt to have shown its readiness to consider scrapping as much as 80% of tariff lines in merchandise trade for all RCEP partners, barring China. New Delhi also is comfortable with removing 65% of tariff lines for China initially (a marked improvement from the initial offer of 42.5%), although these tariffs could be abolished only over a period of time to protect interests of domestic industry, said a source. The period for phasing out tariff lines for imports from China could be 20-30 years, as it is essential to ensure Indian industry has enough time to improve its competitiveness, he added.
Despite its willingness to sweeten its offer in the latest round of talks, India still seems to oppose an “early harvest”, a diplomat from a potential RCEP partner told FE. This means it wants agreements on all the three pillars of negotiations — goods, services and investment — be implemented only as a package, not one at a time. So even if a consensus is reached early on goods (which is what most nations want), India feels it shouldn’t be enforced in isolation. Initially, India had offered to abolish 80% of tariff lines for 10 Asean members, 65% of tariff lines for Japan and South Korea and 42.5% for China, Australia and New Zealand. In return, while South Korea and Japan were willing to offer 80% tariff elimination for Indian goods, China was ready to remove only 42.5% tariff lines. Australia and New?Zealand offered to abolish 80% and 65%, respectively, of tariff lines for merchandise imports from India. If implemented, India’s latest concession will benefit China the most. Already, even without any free trade agreement, India had a massive merchandise trade deficit of almost $53 billion with China in 2015-16. The giant neighbour was the biggest contributor to India’s $93-billion goods trade deficit with all potential RCEP partners in 2015-16. The scrapping of tariff lines means import duties on specified items would be cut to zero over a mutually agreed-upon time frame.
India’s willingness to make further concessions in goods at the RCEP is aimed at expediting the negotiation process, as pressure mounts on the bloc to clinch a deal following the Trans-Pacific Partnership between the US and 11 others. Already, the 2015 deadline for the RCEP deal has lapsed and, going by the progress so far, the fresh deadline of 2016 is likely to be missed, too. Currently, India’s average import tariff rate is around 13.5% (the highest among RCEP nations, so its sacrifice level will be the biggest as well) and in case of non-agricultural items, it’s even lower — 10%. According to a recent estimate by the finance ministry, India could lose tax revenue of R75,733 crore a year if it scraps tariff on merchandise imports entirely now, to either counter or emulate the TPP model of zero duty over a period of time. Several countries are already unwilling to commit much in liberalising their services trade or investment space, and are interested in seeking more concessions from India in goods trade.
SOURCE: The Financial Express
China, the top importer of cotton yarn from India, has significantly reduced its sourcing in recent past. However, India continues to be the major supplier of cotton yarn for China. China has simultaneously reduced yarn imports from the World over the past one year. In July, India’s cotton yarn exports to China plunged 75% year on year, both in terms of shipment and value. During the month, shipment was just 17 million kgs valued at US$285 million as against 66 million kgs worth US$1,118 million last year. This significant drop is likely to impede Indian exports in coming months since China has now trained its eye on supply from Vietnam. In 2016, China’s cotton yarn import dropped 30% year on year to 960 million kgs worth US$2,430 million. In similar comparison, import from India declined 49% to US$560 million for 231 million kgs. In June 2016, total imports were at 159 million kgs (US$400 million) as against 216 million kgs in July 2015 (US$593 million).
Comparatively, import from India was 34 million kgs (US$82 million) in June 2016 as against 62 million kgs (US$169 million). From Vietnam, yarn imports into China in June 2016 stood at 52 million kgs (US$133 million) as against 46 million kgs (US$130 million) in July 2015. Thus, imports from India fell and those from Vietnam rose, partially covering the reduction from India. However, yarns from Vietnam into China were the costliest among major suppliers including Pakistan. Price-wise, Pakistan was the cheapest supplier of cotton yarn for China, followed by India and then by Vietnam. In June, average import price for cotton yarn from the World into China was US$2.51 per kg. The same from Pakistan was US$2.14 a kg, from India US$2.40 a kg and US$2.55 from Vietnam. In July 2015, the numbers were at US$2.75 a kg (Total), US$2.28 a kg (Pakistan), US$2.72 a kg (India) and US$2.83 a kg (Vietnam). Thus. It is apparent the although prices have dropped over the period, Vietnam prices continued to be remain the highest and Pakistan the lowest.
Bangladesh paying more for Indian yarns than China
India’s spun yarn exports in July 2016 plunged 36% in volume terms and 36% in value terms. Total shipments were at 81.3 million kg worth US$237 million or INR1,575 crore, implying average per unit realisation of US$2.91 per kg, which was up US cents 13 from previous month and unchanged as compared to July 2015. Indian spinners were confronted with a fall of their margins and found it difficult to compete on the international market. China has significantly reduced cotton yarn import from India. Thus, Bangladesh became the largest importer of spun yarns from India in terms of value in July. Bangladesh imported spun yarns worth US$287 million at an average price realization at US$3.10 a kg while China imported at an average unit price of US$2.57 a kg during the month. In July 2016, 83 countries imported spun yarn from India, with Bangladesh at the top accounting for 18%. of the total value with imports rising 24% YoY in terms of volume and 22% in value. China ranked second in July and accounted for around 18% of all spun yarn exported from India. Export to China plunged 75% in volumes and value. Peru was the third largest importer of spun yarns, which saw volume and value almost doubling YoY. These three top importers together accounted for around 42% of all spun yarns exported from India in July. 100% man-made fibre yarns export was at 6.75 million kg in July, comprising 2.70 million kg of polyester yarn, 3.08 million kg of viscose yarn and 0.78 million kg of acrylic yarn. Polyester yarn exports were up 6% in value while viscose yarn exports value surged 41% during the month. Acrylic yarn exports plunged 36% in July. Unit price realization was down US cents 12 a kg for polyester from a year ago and that of viscose yarn was up US cents 8 a kg. Acrylic yarn unit price realization was down US cents 6 a kg year on year basis.
SOURCE: Yarns&Fibers
India is likely to pursue amendments to its existing tax treaty with Singapore substantially on the lines of those achieved with Mauritius recently, a top income tax department official said. There may be small variations and some fine tuning, but substantially similar to the amendments effected in the India-Mauritius treaty, said Akhilesh Ranjan, Chief Commissioner of Income Tax (International Taxation), at the 13th international tax conference, organised by industry body Assocham here on Tuesday. “Talks are going on. There are some procedures to be followed. Modalities are on,” Ranjan said. This remark is significant as it indicates that India would strive for attaining the taxing right on sale of shares of an Indian company, by a Singapore-based tax resident. The existing India-Singapore tax treaty provides for residence-based capital gains taxation — capital gains on sale of shares would be taxable only in the country of residence of the seller, subject to satisfaction of limitation of benefits clause.
With India-Mauritius tax treaty amendments notified, all eyes are now on how India-Singapore tax treaty would get reshaped. This is because the amendments in the Mauritius treaty would also with effect from April 1 next year result in the withdrawal of capital gains exemption for investors based in Singapore. At present, investments through Singapore accounts for nearly 16 per cent of foreign direct investment (FDI) (from April 2000 to March 2016) in India, second only to Mauritius. Plugging a loophole in its existing treaty with Mauritius, India had in May this year signed a protocol that led to it getting the taxing right on shares of an Indian company sold by a Mauritius resident. The protocol also provided for a limitation of benefit clause in the Mauritius treaty.
On the sidelines of the Assocham international tax conference, Central Board of Direct Taxes (CBDT) Chairperson Rani Singh Nair confirmed that talks are underway with Singapore to amend the tax treaty between the two countries. “We are under the same protocol. Now that Mauritius has been renegotiated, Singapore is under discussion. There is no timeline and we are discussing it. We hope soon it will be firmed up. As you know, this is a bilateral treaty. We will take the concerns of both the countries and then we will sign,” Nair said.
Singapore better off
Later, Vipul R Jhaveri, Managing Partner-Tax, Deloitte, Haskins & Sells LLP, told BusinessLine that it was in Singapore’s interest to get clarity and push for renegotiation of its tax treaty with India. “Otherwise, investors will say I won’t go to Singapore or whoever is already in Singapore may want to move out of Singapore. If Singapore wants its investments in India to be protected, then they should move fast. India is still in a driver’s seat,” he said. Relative to Mauritius, Singapore will be better off in the coming years, said Jhaveri, adding that the business purpose need will be better met by Singapore than Mauritius. “All the attributes of ecosystem you need to run a business are better in Singapore than Mauritius. People will gravitate to Singapore purely for business reasons and not so much for tax reasons. Today it is lot to do with tax reasons. Tomorrow fewer companies will be going there but more for business reasons,” Jhaveri said. He also added that efficacy of intermediate holding company structure from a tax point of view is now gone. “Now in a true sense if you have an intermediate holding company, it will be for business purpose,” he said.
SOURCE: The Hindu Business Line
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 46.58 per barrel (bbl) on 23.08.2016. This was lower than the price of US$ 47.31 per bbl on previous publishing day of 22.08.2016.
In rupee terms, the price of Indian Basket decreased to Rs. 3125.22 per bbl on 23.08.2016 as compared to Rs. 3178.74 per bbl on 22.08.2016. Rupee closed stronger at Rs. 67.09 per US$ on 23.08.2016 as against Rs. 67.19 per US$ on 22.08.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on August 23, 2016 (Previous trading day i.e. 22.08.2016) |
Pricing Fortnight for 16.08.2016 (July 28, 2016 to Aug 10, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
46.58 (47.31) |
40.73 |
|
(Rs/bbl |
3125.22 (3178.74) |
2723.62 |
|
|
Exchange Rate |
(Rs/$) |
67.09 (67.19) |
66.87 |
SOURCE: PIB
China is planning to add 17 more products from Bangladesh, including items like synthetic fibre, silk waste, short boots and some leather products, to the list of 4,700 products for which it has long been providing duty-free benefits. The duty-free benefit would be provided as part of an effort to deepen trade relations between the two countries. The duty-free access to 17 products was agreed in principle by the Chinese side at the 14th session of the biannual Bangladesh-China Joint Economic Commission, held at the Economic Relations Division (ERD) in Dhaka. At the meeting, Bangladesh side said that through China provides duty-free benefit to 4,700 products, the list does not include the products of their (Bangladeshi businesses) choice. “Beijing has agreed in principle to widen its trade benefits,” ERD senior secretary Mohammad Mejbahuddin said at a press briefing post-meeting. The Chinese delegation led by vice minister for commerce Gao Yan requested Bangladesh to start the procedure for availing duty-free benefit for the 17 new products so that the benefits can be reaped at the earliest, Mejbahuddin said. The visiting team also showed interest in investing in the apparel zone that is being set up in Munshiganj by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), he said. Bangladesh's garment exports to China increased by 11.9 per cent year-on-year to $341.22 million in 2015-16.
SOURCE: Fibre2fashion
Cooperative showroom and design consultancy colony to celebrate New York Textile Month, a month long city wide festival designed to celebrate textile creativity and promote textile awareness with three consecutive exhibits over the span of September 2016, each one showcasing the vastly impressive catalogs of two Colony Co-op members — Hiroko Takeda and Meg Callahan — and Colony Consult collaborator, FEBRIK. Dutch textile company FEBRIK will showcase a colorful installation at Colony's 324 Canal Street location. Highlighting the vibrant spectrum of FEBRIK's collection of knitted upholstery textiles, a closing event will revolve around FEBRIK colors with playfully colorful cocktails served. Meg Callahan, recently named one of Forbes' 30 under 30 for art and design, is known for her graphically impactful quilts. Callahan's stunning pieces use traditional techniques to create inspiring contemporary designs. See the largest collection of Meg Callahan quilts ever to be shown in one place during this one week exhibit. Hiroko Takeda is a textile artist from Japan whose work has been commissioned and has appeared in numerous venues worldwide. In her painterly, sculptural and architectonic idiom of weaving, she expresses deep sensitivities and incongruous harmonies. Celebrate and cap off New York Textile Month with this exhibition of her incomparable work. To investigate and celebrate the survival of the different textile components and expression, NYTM scripts all events, demonstrations and exhibitions concerning cloth, helping the general public to better comprehend and embrace the textiles of life.
SOURCE: Yarns&Fibers
The Export Promotion Bureau (EPB) of Bangladesh will be participating at Heimtextil Frankurt in Germany, the biggest international trade fair for home and contract textiles which will be held from Jan 10 to 13 next year. The first trade fair of the year for its sector, it is a climate and trend barometer for the whole business year. At this leading event for interior textiles, design and trends, international manufacturers, dealers and designers present their products and innovations to a large audience of trade visitors. From Bangladesh, twenty-one exhibitors including 10 under the EPB will be part of the event. Textile Division is the most important division of EPB whose main function is to promote export of Readymade garments. EPB also issues GSP, CO, SAPTA, Annex-III certificate against export of RMG products. The export oriented garments industry has to be enrolled with the textile Division of EPB for getting necessary service. More than 2,867 exhibitors from over 69 countries and around 69,000 buyers and trade visitors from more than 137 countries took part in the fair 2016, the release said.
SOURCE: Yarns&Fibers
Business activity across the 19-country eurozone grew at a steady, moderate pace in August as the region continued to show little concern about the impact of a British exit from the European Union. A gauge of activity in the services and manufacturing sectors in the eurozone, the so-called purchasing managers' index, rose slightly to a seven-month high of 53.3 points from 53.2 in July. The index published Tuesday by IHS Markit is on a 100-point scale, with the 50 mark separating contraction from growth in activity. The result echoes the steady growth seen in July and confirms that businesses in the eurozone aren't overly worried about Britain's June 23 vote to leave the EU, the broader 27-country trading bloc that includes the eurozone. Britain has yet to trigger the clause that will start negotiations on the nation's exit terms. It could take months for the country to invoke that clause and when it does, the actual departure will involve years of negotiations. That has hurt business confidence in Britain, as it could affect the country's access to the single, tariff-less market of the 500-million strong EU. The eurozone appears more resilient. Tuesday's survey suggests the eurozone economy grew at a quarter-on-quarter rate of 0.3 percent in the third quarter, the authors said. "The eurozone remains on a steady growth path in the third quarter, with no signs of the recovery being derailed by 'Brexit' uncertainty," said Chris Williamson, chief business economist at IHS Markit. The details of the survey, which is based on the response of executives from about 5,000 companies, nevertheless showed some potential weak spots. Expectations of future economic growth weakened. And while services activity was at a three-month high, manufacturing saw a drop in new orders. Also, a separate report showed eurozone households were somewhat more concerned than companies. The consumer confidence index published by the European Commission fell slightly in August to -8.5 points, a four-month low, from -7.9 in July. While there were no details available from the survey, analysts say the drop is likely due to concern about what the British vote could mean for the wider region's economy.
SOURCE: The Yahoo News
