Deloitte comments on the latest UK Manufacturing PMI
1 December 2015
Commenting on the Markit / CIPS UK Manufacturing PMI* released today, Mark Stephenson, UK manufacturing industry leader at Deloitte, said:
“Whilst the PMI has dropped slightly to 52.7, it still remains above 50 showing how hardy the UK manufacturing industry was in November’s tough conditions.
“Recent UK GDP data shows that the value of industrial output has grown slightly in the quarter to September. Yet exports are growing only marginally and our trade gap is widening. The continued strength of the Pound relative to the Euro is not helping to ease this pressure on margins in the UK’s largest export market.
“News of further economic uncertainty in China continues to drag, both in terms of demand for UK manufactured goods and uncertainty over supply from the country. On the other hand, more positive economic growth data than expected in Japan and the USA bodes well for developed manufacturing sector economies.
“Despite the apparent challenges, the industry continues to perform. For this to continue, remaining competitive will be key through sustained cost reduction, continuing to innovate, and recruiting, retaining and motivating a skilled workforce.
“Last week’s Autumn Statement and Spending Review left most things largely unchanged for manufacturers, which is welcome for the stability of the industry.”
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
Member of Deloitte Touche Tohmatsu Limited.
* The Markit/CIPS UK Manufacturing PMI® is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 600 industrial companies. The panel is stratified geographically and by Standard Industrial Classification (SIC) group, based on the regional, and industry contribution to GDP. See more at: www.markiteconomics.com