The UK manufacturing sector activity expanded more than expected in December, the final report from IHS Markit confirmed on Tuesday.
The seasonally adjusted IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) was revised higher from 57.6 to 57.9 in December, beating expectations of 57.6.
Key points
Output, new orders and employment all rise.
New export orders fall for fourth month running.
Selling price inflation hits fresh record high.
Rob Dobson, Director at IHS Markit, commented on the survey
“UK manufacturing production rose at the quickest pace in four months in December, supported by increased intakes of new work, efforts to reduce backlogs of work and higher employment.”
“While the uptick in growth is a positive step, the upturn remains subdued compared to the middle of the year, as supply chain constraints and weak export performance constrained attempts to raise production further.”
“Manufacturers indicated that logistic issues, Brexit difficulties and the possibility of further COVID restrictions (at home and overseas) had all hit export demand at the end of the year.”
GBP/USD reaction
At the press time, GBP/USD is extending gains above 1.3500, currently trading at 1.3510. The spot is up 0.30% on the day.
