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UK Manufacturing Slips to Five-Month Low Amid Supply Issues and Delivery Delays

September 1, 2021 by Forex Winner Leave a Comment

UK Manufacturing Slips to Five-Month Low Amid Supply Issues and Delivery Delays

Source: IHS Markit

UK factory output plunged to a five-month low in August, as firms reported input supply issues and delays in deliveries which hit production during the period. ESIC is up 1.52%, while CDIS is up 0.01%.

  • The IHS Markit/CIPS Purchasing Managers Index fell to 60.3 from July’s 60.4. This is the lowest in five months since February but remains above the long-run average of 51.9.
  • Disruptions for the month include port capacity issues, international shipping delays, and the reimposition of COVID-19 restrictions in several key points.
  • Delivery delays were the second-highest on record, next only to April 2020 during the peak of the COVID lockdowns.
  • New business orders climbed amid higher inflows from domestic and overseas markets. Exports also jumped on more orders from Europe, China, the US, Asia, and South America.
  • Most of the firms expect output to climb in the coming year, bringing confidence to a three-month high.
  • Employment grew for the eighth straight month, but several firms reported labor and skills shortages.

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