October 01, 2024 at 09:30AM
Final Manufacturing PMI 51.5 vs. 51.5 expected and 52.5 prior.
Key findings:
Growth of output and new orders ease slightly.
Business confidence down to nine-month low.
Comment:
Rob Dobson, Director at S&P Global Market Intelligence:
“The UK manufacturing sector is still expanding at a
solid, albeit slightly slower, pace. Output rose for the
fifth successive month in September, underpinned by a
resilient domestic market.
However, manufacturers have become more nervous
about the outlook, suggesting that the current spell of
impressive growth is fading, with business optimism
about the year-ahead slumping to a nine-month low.
The extent of the drop in confidence was striking,
beaten only by that seen in March 2020 prior to
COVID lockdowns. Uncertainty about the direction of
government policy ahead of the coming Autumn Budget
was a clear cause of the loss of confidence, especially
given recent gloomy messaging, though firms are also
worried about wider global geopolitical issues and
economic growth risks.
Price pressures are also becoming a more prominent
feature of the survey and a reminder that the inflation
genie is not yet back in the bottle. Input cost inflation
accelerated to a 20-month high, leading manufacturers
to further push up their selling prices. Freight cost rises
are a big factor underlying the resurgence in the price
measures, as supply chains continue to feel the strain of
the Red Sea crisis and global conflicts.”
This article was written by Giuseppe Dellamotta at www.forexlive.com.
