UK Output Growth Accelerates for First Time in Five Months

Source: IHS Markit

Output growth in the United Kingdom posted a slight improvement in October to mark the first acceleration in five months, on improved orders and employment. EWU is up 0.18% premarket.

• The seasonally adjusted IHS Markit/CIPS Purchasing Managers’ Index stood at 57.8 in October, above the 50 threshold that separates expansion from contraction.
• The latest reading is the first acceleration recorded in five months, after being recorded at 57.1 the previous month.
• Manufacturing production posted the slowest growth in eight months, due to supply chain delays and constraints, and staffing issues.
• New export businesses fell slightly for the second straight month, but new order intakes grew overall.
• UK manufacturers were mostly optimistic, with the majority of firms expecting an increase in output in the next year.
• The overall degree of sentiment fell to an eight-month low, due to global and domestic economic conditions, along with COVID-19 and supply issues.
• Input price inflation continued to remain at historic highs, due to higher input prices. Output charges also rose to record-highs.