Friday, 2 December 2016

U.K. Manufacturing Sector Expands Less Than Forecast

In World Economy News 02/12/2016

The U.K. manufacturing sector expanded at a slower-than-expected pace in November, data from IHS Markit revealed Thursday.
The Markit/Chartered Institute of Procurement & Supply Purchasing Managers’ Index dropped unexpectedly to 53.4 in November from 54.2 in October. The score was expected to rise to 54.4.
The PMI has remained above the neutral 50.0 mark for four successive months.
Rates of expansion for output and new orders both remained solid, despite growth easing further from the highs reached in September.
There were signs that the weak sterling exchange rate pushed up inflationary pressure. Average purchase prices rose at a pace close to October’s near six-year record.
At the same time, output charges rose for the seventh successive month, with the rate of increase close to October’s 64-month record.
“Although the recent growth spurt showed further signs of slowing, the pace of expansion is still solid and above its long-term trend,” Rob Dobson, a senior economist at IHS Markit, said.
“This should be sufficient to ensure manufacturing is a positive contributor to fourth quarter GDP,” the economist added.

Source: RTT