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The UK manufacturing sector upturn slowed in September as supply chain delays, slow new order growth and higher cost weighed on production, final data from IHS Markit showed on Friday.

The final Chartered Institute of Procurement & Supply manufacturing Purchasing Managers’ Index fell to a seven-month low of 57.1 in September from 60.3 in August. The flash reading was 56.3.

Production increased at the slowest pace since February. Upturns at medium and large-scale producers were offset by a continued downturn among small firms.

Production schedules were disrupted by a combination of input shortages, longer supplier lead times and capacity constraints.

New orders also rose at the weakest pace since February as export orders contracted for the first time in eight months.

Manufacturers continued to report labor shortages and difficulties recruiting appropriately skilled staff during September.

Manufacturers maintained a positive outlook for the year ahead in September. Over 62 percent of companies forecast their output would increase during the coming twelve months.

On the price front, data showed that both input and selling prices continued to surge higher.

“The September PMI highlights the risk of the UK descending towards a bout of ‘stagflation’, as growth of manufacturing output and new orders eased sharply while input costs and selling prices continued to surge higher,” Rob Dobson, director at IHS Markit, said.


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