Latest data released by Markit - 1 November 2021
The preliminary report can be found here. A minor change to the initial estimate as the final reading reaffirms that supply constraints weighing on manufacturing output, easing to the slowest pace in eight months. Markit notes that:
"Growth of UK manufacturing production slowed further during October, with output volumes rising only slightly and at the weakest pace for eight months. Strained global supply chains are disrupting production schedules, while staff shortages and declining intakes of new export work are also stymieing the upturn. This low growth environment is occurring in tandem with a severe upshot in inflationary pressures, with manufacturers reporting both a near-record increase in input costs and record rise in selling prices.
"There are also positive notes to take from the survey. A slight improvement in new order growth, led by the domestic market, suggests the trend in demand is stabilising following its recent slowdown. Businesses also remain relatively optimistic about the year-ahead outlook, with 62% expecting production to be higher. This alongside rising backlogs of work - a by-product of material and staff shortages - is driving a recovery in jobs growth. However, these positives could potentially be at risk if supply-chain, Brexit or COVID headwinds rise during the coming months, especially if high inflation leads to higher borrowing costs."
