UK November final manufacturing PMI 48.0 vs. 48.6 prelim

• Final Manufacturing PMI 48.0 vs. 48.6 expected and 49.9 prior.

Key findings:

• Output contracts as new orders fall
• Cost concerns lead to job cuts
• Supply chain stresses increase

Comment:

Rob Dobson, Director at S&P Global Market Intelligence:

“Conditions in the UK manufacturing sector deteriorated
again in November. The headline PMI fell to a nine-month
low as concerns surrounding the economic outlook, high
costs and weak demand led to lower output, falling orders
and cutbacks to purchasing, jobs and inventory holdings.

The export climate also remained bleak, as weaker
demand from the US, China and EU led to a further drop
in new export business. While companies of all sizes
are experiencing a downturn, small companies are the
hardest hit, reporting especially marked drops in output,
new orders and new export business.

Meanwhile, supply chain worries have intensified as the
combination of the Red Sea crisis, port disruptions and
border regulation issues led to longer supplier delivery
times, input shortages and rising costs. Input price
inflation accelerated as a result.

With recent budget
announcements on labour costs and employer national
insurance likely to raise costs further in 2025, and
geopolitical tensions heating up notably around the threat
of increased global protectionism, manufacturers are
left facing an environment of high costs, low demand and
raised uncertainty for the foreseeable future.”

This article was written by Giuseppe Dellamotta at www.forexlive.com.