2/1, 10:36 AM (Source: TeleTrader)
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Manufacturing expansion in UK weakens last month

Preparations for Brexit took the increase in stockpiles at factories in the United Kingdom in January to the highest levels ever measured by IHS Markit and the Chartered Institute of Procurement and Supply. Data from a regular survey, conducted for 27 years with purchasing managers, took the headline index for the manufacturing sector 1.4 points lower to 52.8, the weakest reading in three months. A print above 50 signifies expansion, but the level was the second-lowest since July 2016, right after the referendum about the membership in the European Union.

Respondents reported the second drop in hiring in 30 months and the rise in production and new orders significantly slowed. The output of investment goods fell for the first time since the plebiscite and activity in the intermediate goods segment rose less than in December. Consumer goods outperformed. Input cost growth fell to a 32-month low.

"January also saw manufacturing jobs being cut for only the second time since mid-2016 as confidence about the outlook slipped to a 30-month low, often reflecting ongoing concerns about Brexit and signs of a European economic slowdown," said IHS Markit's director Rob Dobson.

Breaking the News / IT