The UK’s manufacturing sector has now expanded for almost three years straight – manufacturing production has increased for thirty-three consecutive months now.
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December’s Caixin manufacturing PMI at 48.2 missed the forecast of 48.9 and was below November’s 48.6. The continued expansion is the best streak of growth since 2010.
The seasonally adjusted PMI is a composite single-figure indicator of manufacturing performance.
Ai Group chief executive Innes Willox said it is a welcomed turnaround for the manufacturing sector, which has been in the doldrums for much of the past five years.
The U.K. manufacturing sector growth eased unexpectedly in December, due to a further slowdown in growth of output and new orders, survey data from Markit Economics showed Monday.
The set of activity data for November released earlier showed signs of improvement in China’s economy as well, with industrial production and retail sales growth accelerating, while fixed-asset investment maintained its upward momentum.
The bottom line is that manufacturing in the United Kingdom continues to expand, but the pace of expansion is slowing.
At 48.0, up from 47.0 in November (the lowest reading since the survey began in July 2012), the headline PMI signalled a slower deterioration in operating conditions at Malaysian manufacturers. Moreover, the latest index contributed to the strongest quarterly average (52.5) since Q1 2014 (55.3). Analysts on the street had expected the euro zone manufacturing PMI to remain unchanged at 53.1.
Measures of output, new orders and employment all fell in October.
“Overall, 2016 looks as though it will be another tough year for UK manufacturers”, Ruth Miller, UK economist at Capital Economics said.
The UK’s economic growth remains dominated by service sector output – thanks, in part, to record employment and the combination of low interest rates – with wage rises easily outpacing low inflation. According to a report released by market research firm Markit, it was reported that the Eurozone’s manufacturing PMI rose to 53.2 in December as compared to a reading of 53.1 in the preceding month.
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Weak growth will likely harden expectations that the Reserve Bank of India (RBI) will ease policy further by June, provided inflation is under control.
