Published: Sat, December 02, 2017
Markets | By Rosalie Gross

UK Manufacturing PMI Jumps to Over Four-Year High

UK Manufacturing PMI Jumps to Over Four-Year High

Chinas Caixin Purchasing Managers Index dropped to 50.8 in November from 51.0 in October, as subdued growth in new orders and a substantial fall in employment coincided with a decline in business sentiment, survey results from IHS Markit showed Friday.

Sterling rose briefly against the dollar after the PMI showed surging orders at home and from Europe's recovering economy.

Overall it added to signs that manufacturing could be a bright spot next year, when the slowdown in the overall economy is likely to deepen as Britain approaches its departure from the European Union in March 2019.

The Philippines' manufacturing PMI rose to its highest so far this year in November, an IHS Markit/Nikkei survey found, buoyed by solid domestic demand.

However, the weaker pound has helped many manufacturers to compete in export markets.

Samuel Tombs, chief United Kingdom economist at Pantheon Macroeconomics, said: "UK manufacturers are being swept along by the Eurozone's resurgence - the single currency area's PMI increased to 60.1, from 58.5 in October - but remain cautious about the outlook". The final figure, which was in line with a flash reading released last week, was well above the 50 line that separates growth from contraction.

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Last week, Britain's official budget forecasters slashed their forecasts for economic growth in the coming years as they turned more pessimistic about the outlook for productivity, the Achilles heel of Britain's economy.

A PMI survey of the services sector is due to be published on Tuesday. Improved production processes and sub-contracting also contributed.

Production grew at the fastest pace in eights months in November, driven by a further sharp increase in new orders.

India's manufacturing sector in November recorded the strongest improvement in business activity in 13 months as new orders picked up supported by reduction in GST rates and strong demand conditions, a survey has said.

Rising costs were commonly associated with higher prices paid for imported raw materials, with demand for inputs exceeding supply.

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