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UK Manufacturing Slips to Seven-Month Low in September

October 1, 2021 by Forex Winner Leave a Comment

UK Manufacturing Slips to Seven-Month Low in September

Source: IHS Markit

UK manufacturing eased for the fourth straight month to its lowest level in seven months in September, dragged by the continued supply chain constraints and labor shortages. EWU is flat premarket.

  • The IHS Markit/CIPS Purchasing Managers’ Index stood at 57.1, down from 60.3 the previous month. This is the lowest since February.
  • Growth slowed across the consumer, intermediate, and investment goods sectors, as production schedules were disrupted by input shortages and longer lead times.
  • New business growth also eased, marking the weakest advance since February as clients increased at a slower pace and new export work contracted.
  • UK manufacturers reported staff shortages and difficulties in recruiting skilled staff, even as job growth was recorded for the ninth straight month.
  • Prices for raw materials and skilled staff surged, with 99% of the managers indicating that prices had either gone up or stayed at elevated rates.
  • Firms maintained a positive outlook for the year ahead, with over 62% of companies forecasting an output in the year versus 6% expecting a contraction.

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