The UK manufacturing sector made a lacklustre begin to 2019, the newest survey report from IHS Markit confirmed this Friday.
The seasonally adjusted IHS Markit/CIPS UK Buying Managers’ Index (PMI) retreated sharply from the earlier month’s six-month excessive and fell to a three-month low of 52.eight in January.
• Shares of purchases rise on the survey-record fee.
• Employment falls for under the second time in previous 30-months.
Rob Dobson, Director at IHS Markit, commented on the survey: “The beginning of 2019 noticed UK producers proceed their preparations for Brexit. Shares of inputs elevated on the sharpest tempo within the 27-year historical past, as shopping for exercise was stepped as much as mitigate in opposition to potential supply-chain disruptions in coming months. There have been additionally indicators that inventories of completed items have been being bolstered to make sure warehouses are nicely stocked to satisfy ongoing contractual obligations.”
“Regardless of the momentary enhance offered by shoppers’ prepurchases and efforts to build-up shares, the underlying tendencies in output and new orders remained lacklustre at finest. Development of latest order inflows slowed sharply, and new export orders have been near-stagnant, contributing to the weakest pattern in output because the month following the EU referendum (July 2016). Primarily based on its historic relationship in opposition to official knowledge, the January survey is per an additional stable contraction of manufacturing volumes, which means manufacturing will possible act as a drag on the financial system within the first quarter.”