The UK manufacturing sector growth strengthened in November before the end of the Brexit transition period, final data from IHS Markit showed Tuesday.
The IHS Markit/Chartered Institute of Procurement & Supply factory Purchasing Managers’ Index rose to a 35-month high of 55.6 in November from 53.7 in October. The flash reading was 55.2.
Production increased again in November driven by the re-opening of factories following the Covid-19 closures earlier in the year and improving demand.
Whether the upturn of manufacturing production can be sustained into the new year is highly uncertain, especially once the temporary boosts from Brexit purchasing and stockbuilding wane, Rob Dobson, director at IHS Markit, said.
Incoming new business continued to rise, in part boosted by EU clients bringing forward purchases before the Brexit transition period ends.
Further, the survey showed that input buying volumes increased to the greatest extent since March 2019, mainly to achieve the steepest growth in stocks of purchases for over a year.
Despite business optimism about the year ahead rising to a six-year high, manufacturing job losses were recorded for the tenth consecutive month in November.
Input cost inflation accelerated to a two-year high in November. Companies responded by raising their average selling prices to the greatest extent in the year so far.
The material has been provided by InstaForex Company – www.instaforex.com