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UK factory downturn shows more signs of easing- PMI

Published 01/12/2023, 09:35
Updated 01/12/2023, 17:51
© Reuters. A worker removes pieces of metal from the galvanising bath inside the factory of Corbetts The Galvanizers in Telford, Britain, June 28, 2022. REUTERS/Phil Noble/File Photo

LONDON (Reuters) - Britain's manufacturing sector showed further signs that it might be turning a corner in its long-running downturn but companies remained cautious and pushed up their prices, according to a survey published on Friday.

The final reading of the S&P Global/CIPS manufacturing Purchasing Managers' Index (PMI) improved for a third month in a row to 47.2 in November from 44.8 in October.

The reading was also up from a preliminary November estimate of 46.7 although it remained below the 50.0 growth threshold for a 16th month in a row.

The severity of the downturn eased in output and new orders, the PMI showed.

"Manufacturers nonetheless remained on a cautious footing, with ongoing market uncertainty and the need to control costs leading to job losses, stock depletion and lower purchasing," S&P Global said.

© Reuters. A worker removes pieces of metal from the galvanising bath inside the factory of Corbetts The Galvanizers in Telford, Britain, June 28, 2022. REUTERS/Phil Noble/File Photo

Input costs fell again but manufacturers increased their selling prices for only the second time in six months - albeit fractionally - as they sought to repair profit margins, it said.

The Bank of England is monitoring price pressures in the economy after keeping interest rates at their 15-year high in September and November and saying that it has not seen enough easing in underlying inflation to think about cutting them.

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