UK Manufacturing
UK manufacturing experienced a sharp slowdown during October, with experts predicting further contractions in the fourth quarter.
According to the latest IHS Markit/CIPS PMI survey, new orders and employment both fell for the first time since the Brexit vote, as domestic and overseas demand were hit by a combination of Brexit uncertainties, rising global trade tensions and especially weak demand for vehicles.
“October saw a worrying turnaround in the performance of the UK manufacturing sector. At current levels, the survey indicates that factory output could contract in the fourth quarter, dropping by 0.2 per cent,” commented Rob Dobson, Director at IHS Markit.
"Looking ahead, manufacturers still maintain a positive outlook for production over the coming year, with 48 per cent forecasting expansion.
"That said, the second half of the year so far has also seen confidence remain low compared to its long-run average, with views on prospects darkening again in October amid rising Brexit-related uncertainties and escalating global trade tensions,” he continued.