Data published by IHS Markit/CIPS showed that in November, the UK manufacturing PMI rose to 58.1 from 57.8 in October, reaching a three-month high. However, economists had expected an increase to 58.2 points.
The report showed that the growth of the sub-index of production accelerated compared to October, and recorded the 18th consecutive monthly increase, helped by an increase in the number of new jobs and efforts to accumulate stocks. However, the companies reported that further production growth was constrained by a lack of resources and labor.
Meanwhile, the average order completion time increased significantly in November, which was due to supply chain pressures. As a result, average purchase prices showed a record increase. The cost price and market pressure also caused a significant increase in selling prices.
The data also showed that the volume of new orders increased for the tenth month in a row, while new export orders declined. The backlogs of work rose to an almost record level, which contributed to an increase in employment in the sector at the fastest pace since August.
As for the prospects, the business optimism of British manufacturers rose to a three-month high. More than 63% of companies expected production growth in the next 12 months, and only 6% predicted a decline.