- Final Manufacturing PMI 49.9 vs. 50.3 expected and 51.5 prior.
Key findings:
- Manufacturing PMI at 49.9 in October.
- Reduced new order intakes rein in output growth.
- Input price inflation eases sharply.
Comment:
Rob Dobson, Director at S&P Global Market Intelligence:
“UK manufacturing started the final quarter of the year
on an uncertain footing amid speculation on government
policies ahead of the Budget, which was widely reported
to have led to a wait-and-see approach on investment
and spending. This domestic headwind, combined with an
ongoing loss of export business, led to the first outright
contraction in new work intakes since April.
Output growth
came close to stalling as a result.
The generally lacklustre environment was also reflected
in the headline PMI slipping below its neutral 50.0 mark
and business optimism hovering only slightly above
September’s nine-month low.
There was better news on the price front. Input cost
inflation fell to a ten-month low, easing to one of the
greatest extents in the 33-year survey history.
Selling
price inflation also moderated. This may provide some
headroom for policy makers to support growth if demand
weakens.
The November PMI will be especially keenly anticipated
to see the near-term impact of the Budget on business
conditions and in particular the effect on confidence.”
UK Manufacturing PMI