UK Manufacturing Decline Slows After New Brexit Stockpiling Rush: PMI

• 11.01.2019, 18:38
•  Europe,  World

A renewed rush to stockpile ahead of another aborted Brexit deadline limited losses for British manufacturers last month, though not by enough to prevent a sixth month of contraction, a survey showed on Friday, Reuters reports.

However, the index still remained below the 50 dividing line between growth and contraction.

October’s PMI was flattered by manufacturers building stocks ahead of the Oct. 31 date for Brexit that was superseded this week by a Jan. 31 deadline, survey compiler IHS Markit said.

Britain will also hold an early national election on Dec. 12 as Prime Minister Boris Johnson tries to break the Brexit deadlock.

"Many manufacturers had some form of shutdown planned, while others were engaged in expensive stock building activities in preparation for potential no deal shocks to their supply chain," said Seamus Nevin, chief economist at manufacturing association Make UK.

"This together with the continued Brexit and now electoral uncertainty means there is no end in sight to the roadblocks industry is facing."

Uncertainty around Britain’s exit from the European Union, originally scheduled for March 29, had previously prompted factories to load up on parts in early 2019 at the fastest rate in the 27-year history of the PMI surveys.

While October’s survey showed the stockpiling surge was smaller this time round, it was still in excess of anything seen before in other Group of Seven rich countries covered by the PMIs.