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1/4, 10:31 AM (Source: TeleTrader)
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UK manufacturing PMI at 37-month high of 57.5 in December

The manufacturing sector in the United Kingdom advanced in December compared to the month prior, beating analysts' expectations, a report released by IHS Markit showed on Monday. The seasonally adjusted IHS Markit/CIPS Purchasing Managers' Index (PMI) climbed 1.9 index points on a monthly basis to land at 57.5, marking its highest level in 37 months. The index rose for the seventh consecutive month in December.

Meanwhile, new orders across the manufacturing sector increased at the highest pace since August, IHS Markit said, adding that "clients are bringing forward orders to guard against potential disruption caused by the end of the Brexit transition period."

"It seems likely that this boost will reverse in the opening months of 2021, making for a weak start to the year. UK manufacturers also built-up input stocks to one of the greatest extents in the 29-year survey history in expectation of heightened logistics issues continuing during the first part of 2021. If this is the case, as expected, the disruption to deliveries and production schedules, alongside the unwinding of Brexit inventories, may place the manufacturing recovery under greater threat in the coming months," Rob Dobson, director at IHS Markit, commented on the survey.

Breaking the News / GA