U.K. manufacturing gauge falls to 53.4
The seasonally adjusted Purchasing Managers' Index (PMI) for the British manufacturing sector declined to 53.4 in November from the prior month's reading of 54.2, according to data released by IHS Markit on Thursday. The figure is still higher than its long-run average of 51.5 and has remained above the neutral 50 mark for four consecutive months.
Output growth and the rate of expansion of new orders lost momentum, but remained solid and above long-term trends nonetheless. Companies surveyed said that domestic and export demand both contributed to gains in production, as did new product launches, sales initiatives and efforts to reduce backlogs of work. However, data indicates that the weak exchange rate had a negative impact on the sector over the period by raising input costs and ultimately leading to higher selling prices. On the bright side, weakening currency boosted the competitiveness of manufacturing exports, resulting in new business from abroad.