HomeLive CommentsUK PMI manufacturing rose to 49.6, underlying picture darker than headline suggests

UK PMI manufacturing rose to 49.6, underlying picture darker than headline suggests

UK PMI Manufacturing rose to 49.6 in October, up from 48.3, and beat expectation of 48.0. While that’s below 50 neutral level, it’s still a 6-month high.

Rob Dobson, Director at IHS Markit, which compiles the survey:

“The manufacturing downturn continued at the start of the final quarter as uncertainties surrounding Brexit, the economic outlook and domestic politics all took their toll. However, the underlying picture looks even darker than even these disappointing headline numbers suggest, as output and new orders fell despite short term boosts from stock-building activity in advance of the October 31st Brexit deadline, which included a rise in exports as clients in the EU sought to mitigate supply risk.

“The high degree of uncertainty is hitting two areas of the manufacturing economy especially hard. The first is the trend in employment, as job losses resulting from disappointing sales are exacerbated by manufacturers implementing hiring freezes until the outlook clears. The second is the investment goods industry, where output and new orders are falling sharply as clients postpone capital spending plans.

“With a further Brexit extension confirmed and the prospect of a December general election, it looks as if the spectre of uncertainty will cast its shadow over manufacturing for the remainder of 2019.”

Full release here.

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