U.K. Manufacturing Growth Slows as Firms Reduce Stockpiling Pace
(Bloomberg) -- Go inside the global economy with Stephanie Flanders in her new podcast, Stephanomics. Subscribe via Pocket Cast or iTunes.
U.K. manufacturing growth slowed in April as firms dialed back Brexit-related stockpiling and new export business fell.
IHS Markit's Purchasing Managers Index for the sector dropped from a 13-month high as production growth also slowed and job losses in the industry mounted. While companies continued to build up stockpiles to guard against Brexit risk, the delay to U.K.'s departure meant they did so to lesser extent than in previous months, according to the survey.
Key Insights
- Markit's index fell to a two-month low of 53.1 last month, the firm said in a report Wednesday, a reading in line with the median estimate of economists in a Bloomberg survey
- Overseas demand dropped, with companies saying Brexit uncertainty was the main factor underlying the decrease. Slower global market conditions also played a role, with lower demand from the European Union, the U.S. and China
- Business optimism rose to a seven-month high, although some firms noted continued concerns about leaving the EU and the possible impact of running down stockpiles
Get More
- A CBI survey last week showed British manufacturers stockpiled at their fastest ever pace in anticipation of the U.K. leaving on its scheduled March 29 exit date
- Markit's report is one of the last major data points before the Bank of England announces its latest policy decision and forecasts on Thursday
- The firm is due to publish similar indexes for the U.K.'s construction and dominant services sector later this week.
©2019 Bloomberg L.P.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
