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UK Output Cools to Seven-Month Low in September on Supply-Chain Disruptions

September 23, 2021 by Forex Winner Leave a Comment

UK Output Cools to Seven-Month Low in September on Supply-Chain Disruptions

Source: IHS Markit

The United Kingdom output declined for the fourth straight month in September, dragged by ongoing supply-chain issues.

  • The IHS Markit / CIPS Flash UK Composite Output Index fell to 54.1 in September. This is the weakest since March.
  • Business activity dropped to a seven-month low of 54.6, as new order growth and job creation slowed, while employment fell amid shortages of available staff.
  • Manufacturing output declined to a seven-month low of 51.8, as production posted modest growth amid supply bottlenecks and softening demand.
  • The manufacturing PMI also slipped to a seven-month low of 56.3, marking the fourth month of deceleration. Delivery times lengthened while selling prices were unchanged from August.
  • Business expectations for the coming year are at their lowest level since January due to supply issues and concerns over the ongoing COVID-19 pandemic.
  • Brexit was also cited as the cause for global pandemic-related supply and staffing issues, along with the foregone export sales.

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