Ekonomické zprávy
01.11.2021

UK output growth slows in October - IHS Markit / CIPS

According to the report from IHS Markit / CIPS, the manufacturing upturn slowed further at the start of the fourth quarter, as output growth was constrained by rising supply chain disruption, staff shortages and declining intakes of new export work.

The seasonally adjusted PMI posted 57.8 in October, up from 57.1 in September, rising for the first time in five months. Although the PMI was boosted by improved growth of new orders and employment, alongside a steeper rise in stocks of purchases and lengthier vendor lead times, a further slowdown in output growth held back the headline index.

Manufacturing production rose only marginally and at the slowest pace for eight months. Companies reported that supply chain delays alongside shortages of raw materials, staff and certain skills had contributed to slower output growth.

Lower intakes of new export work also had an impact on production volumes. New export business fell, albeit slightly, for the second successive month. Companies reported that some overseas clients were cancelling or postponing orders due to longer lead times caused by port delays and freight capacity issues.

UK manufacturers maintained an optimistic outlook during October, with almost 62% expecting their level of output to increase over the coming year. That said, the overall degree of positive sentiment dipped to an eight-month low. Confidence was attributed to stronger global and domestic economic conditions, reduced disruption from Brexit, COVID-19 and supply-chain issues and also planned investment spending (including in automation).

Podívejte se také