UK manufacturing PMI rises for 1st time in 5 months

By Tuba Sahin

ANKARA (AA) – The UK Purchasing Managers’ Index (PMI) for the manufacturing sector rose for the first time in five months, reaching 57.8 in October, according to data released on Monday.

“Although the PMI was boosted by improved growth of new orders and employment, alongside a steeper rise in stocks of purchases and lengthier vendor lead times, a further slowdown in output growth held back the headline index,” London-based global data firm IHS Markit said in a report.

Choked by supply chain disruptions, manufacturing production increased marginally in October and at the slowest pace for the past eight months.

Lower export orders also contributed to the slowdown in production volumes, as overseas clients canceled or postponed orders due to longer lead times caused by port delays and freight capacity issues, the report said.

A relatively stronger domestic market offset some of the impact of the weak overseas demand.

“Overall new order intakes rose at a slightly quicker pace, linked to economic growth and clients increasing purchases to avoid expected supply chain delays and further price rises in coming months,” read the report.

“UK manufacturers maintained an optimistic outlook during October, with almost 62% expecting their level of output to increase over the coming year,” it added.