–UK Oct CIPS Manufacturing PMI 47.4 In Oct Vs 50.8 In Sep
LONDON (MNI) – The UK manufacturing Purchasing Managers Index
slumped back into contraction territory in October, coming in at 47.4
from a downwardly revised 50.8 in September (51.1), according to the
latest Markit/Chartered Institute of Purchasing and Supply survey.
Markit/CIPS noted that the fall had been driven by the fastest
decline in new orders since March 2009, with the only good news that
inflation pressures appear to be easing.
The decline in new orders will weigh on future output, and the data
are fueling concerns about the possibility of negative growth in Q4.
Rob Dobson, Senior Economist at Markit and author of the
Markit/CIPS Manufacturing PMI:
“The UK manufacturing PMI fell sharply back into contraction
territory in October. The most worrying aspect of the survey is the
trend in new orders … Companies are facing tough conditions in both
domestic and overseas markets, meaning that output is increasingly being
sustained through the depletion of backlogs of work.”
Dobson added that “A marked recovery in the replenishment rate of
order books is needed to prevent the renewed manufacturing downturn
becoming embedded”.
While output and new orders decline, input costs and output prices
rose at their slowest rates for some two years.
–London newsroom: +44 207 862 7492; email:ukeditorial@marketnews.com
[TOPICS: MABDS$,M$B$$$,MT$$$$]