Latest data released by Markit/CIPS - 16 December 2020
- Prior 47.6
- Manufacturing PMI 57.3 vs 56.0 expected
- Prior 55.6
- Composite PMI 50.7 vs 51.5 expected
- Prior 49.0
As the November lockdown eases, the UK economy is seen stabilising somewhat in December with the manufacturing sector particularly bolstered by a boost to manufacturing orders in a rush to beat the Brexit transition period deadline.
Markit notes that:
"The UK economy returned to growth in December after the lockdown-driven downturn seen in November, adding to signs that the hit to the economy from the second wave of virus infections has so far been far less harsh than the first wave in the spring.
"The recovery lacked vigour, however, as the service sector remained under particular strain, contracting marginally again as ongoing social distancing measures due to tiered lockdowns continued to hit many parts of the economy. Consumer-facing services, notably hotels, restaurants and tourism, reported further marked declines in output, largely offsetting renewed growth in business services, transportation and manufacturing.
"The manufacturing and transport sector improvements were linked to reviving global trade and a temporary boost from Brexit-related stockpiling, which reportedly buoyed order books and exports during the month.
"While job losses continued to be reported during the month, it was encouraging to see the rate of job cutting ease to the lowest since the start of the pandemic. Business optimism about the year ahead also remained buoyant, reflecting the light at the end of the tunnel created by the roll-out of the COVID-19 vaccines. Optimism waned slightly compared to November, however, largely due to rising concerns over a no-deal Brexit."
