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Positive outlook for UK manufacturers as domestic demand and gains in export business boost results

1 December 2017

Commenting on the IHS Markit/CIPS UK Manufacturing PMI for November, which jumped to 58.2 today – up from 56.6 in October – Duncan Johnston, UK manufacturing industry leader at Deloitte, said:

“This month’s headline result has been boosted by strong domestic demand and significant gains in new export business, driven by overseas growth in US and Europe. The impact of previous declines in sterling appears to be reducing, as the index indicates that the UK manufacturing sector continues to strengthen.

“Today’s result sees the highest level in four years and follows the strongest order books in almost 30 years reported by the CBI, increasing optimism among manufacturers.

“The plans outlined in the Government’s Industrial Strategy for investment in AI, science and maths subjects and most importantly, in our view, technical training are also encouraging news for the sector in the longer term. This opportunity could drive further adoption of AI and analytics in the manufacturing sector. It will be key for Government to effectively implement and deliver the actions spelled out in the strategy.

“Looking ahead to 2018 the prospects for the sector depend not on the measures for the long term but shorter-term issues, such as the continuing strength of export demand and how cost inflation can be passed onto customers.”

End

Notes to editors

About Deloitte
In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms. 

Deloitte LLP is a subsidiary of Deloitte NWE LLP, which is a member firm of DTTL, and is among the UK's leading professional services firms.

The information contained in this press release is correct at the time of going to press.

For more information, please visit www.deloitte.co.uk.

Member of Deloitte Touche Tohmatsu Limited.

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