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- UK manufacturing constrained by ongoing political and economic uncertainties in October - IHS Markit/CIPS
UK manufacturing constrained by ongoing political and economic uncertainties in October - IHS Markit/CIPS
According to the report from IHS Markit, ongoing uncertainties surrounding Brexit, the economic outlook and the political situation continued to weigh on the UK manufacturing sector during October. Output and new order inflows contracted, leading to further job losses. Firms also ramped up stock-building and purchasing activity in the lead-up to the (postponed) October Brexit departure date.
The headline seasonally adjusted IHS Markit/CIPS PMI rose to 49.6 in October, up for the second successive month but remaining below the neutral 50.0 mark separating expansion from contraction. Economists had expected a decrease to 48.1. Please note that data for the latest survey were collected from 11-28 October. This was before the confirmation of the latest Brexit extension on the 28th and the passing of the Early Parliamentary General Election Bill by the UK House of Commons on the 29th.
The downturn in manufacturing production continued, although the rate of contraction slowed. Firms reported that weaker inflows of new business, especially from the domestic market, had led to a further scaling back of output. This was partly offset by manufacturers who raised production to build-up stocks in advance of the October Brexit deadline.
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