UK PMI Manufacturing was finalized at 53.7 in October, down from September’s 54.1. It’s nonetheless the fifth straight months of expansion reading. Markit said output and new order growth slowed while job losses mounted. But business optimism was at highest level since January 2018.
Rob Dobson, Director at IHS Markit: “October saw the UK manufacturing recovery continue, albeit with the upturn losing momentum amid ongoing lockdown measures and signs that growth could weaken further in coming months after Brexit-related stockpiling. The main drag was a fall back into contraction for the consumer goods industry… There was positive news on the export front… However, a significant contribution to the improvement in exports came from a temporary boost of Brexit stock building by EU clients.
“The outlook for the remainder of the year has therefore become increasingly uncertain, with risks tilted to the downside. While most companies maintain a positive outlook, with three-fifths of manufacturers expecting output to rise over the coming year, concerns about near-term risks posed by the pandemic, changes to COVID restrictions and related stimulus measures, plus Brexit anxieties, continue to fog the future.”
