UK Manufacturing Slips as New Order Growth Decelerates

Source: IHS Markit

UK manufacturing expanded for the twentieth straight month in January, albeit at a slower pace as new orders declined. EWU is up 0.44%.

• The IHS Markit/CIPS Purchasing Managers’ Index stood at 57.3 in January, lower than the 57.9 recorded in December.
• The decline reflects the deceleration in new order growth and the slower growth in vendor lead times during the month.
• Production volumes also grew for the twentieth successive month, with the rate of expansion up to the highest level in six months since July 2021.
• Employment increased for the thirteenth straight month, as firms reported new project launches and higher demand and preparations for future growth.
• Input price inflation remained at historical highs, but growth fell to a nine-month low. The easing of the strain on global supplies drove cost increases down.
• Purchase stocks recorded the fastest growth in survey history, as firms reported pre-purchasing inputs to avoid price increases.