Outlook for UK manufacturing eases but strong order books show continued confidence
02 October 2017
Commenting on today’s IHS Markit/CIPS UK Manufacturing PMI for September, Duncan Johnston, UK manufacturing industry leader at Deloitte, said:
“The PMI figure for the UK manufacturing sector slipped to 55.9 today – down from 56.7 in August. It has remained above the 50 mark, which indicates expansion in the sector, for 14 consecutive months.
“Today’s data is broadly consistent with last week’s CBI monthly Industrial Trends Survey which saw the factory order book balance fall to +7, the lowest value since April. However, overall sentiment in the industry is positive, with greater output reported due to an increase in new business. This has come from both domestic and overseas demand.
“The continued optimism reported in industry surveys will be positive news for the sector. However, the manufacturing economic output results for Q3, due later this month in the Preliminary GDP estimate, will reveal more about the health of the sector which saw a decline in output in Q2. This will depend on factors such as actual fulfilment and value of orders, as well as cost pressures faced by businesses.”
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