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Manufacturing activity in the United Kingdom declined during the month of October, remaining slightly below what markets had initially anticipated.
The UK Markit/CIPS UK manufacturing PMI index declined to 54.3 for October from a revised 55.5 the previous month, which was originally reported as 55.4. The data was slightly below consensus expectations of 54.6, but remained well above the long-term average of 51.5.
New order volumes increased for the third consecutive month and at a pace close to September’s recent high. Companies reported higher demand from both domestic and export clients. Although the slowdown in output growth was more noticeable in comparison, the rate of expansion in October nonetheless remained solid compared to series average.
The strongest performing sub-sector was intermediate goods, which saw production rise at the quickest pace in a year. Output also continued to increase sharply at consumer and investment goods producers, albeit at markedly slower rates than in September.
Manufacturing employment increased for the third straight month during October. The rate of jobs growth accelerated to a one-year high. Companies linked higher employment to rising production requirements. Job creation was strongest at SMEs, while only a marginal increase was signaled for large-sized firms.
