LONDON (MNI) – The latest Markit/CIPS purchasing managers’
manufacturing sector survey showed the sector showing some signs of
stabilising, with the headline activity index coming in at 49.1 – well
above the median analyst forecast of 48.0.
The November outturn marked a clear improvement from October’s
three-month low of 47.3. But Markit pointed out that November marked the
seventh straight month that the headline reading had been below the
neutral 50.0 level.
But production actually rose for the first time in five months,
although this was driven by a stabilising trend in new orders and a
sharp reduction in backlogs of work.
In fact, outstanding business fell at one of the fastest rates seen
since the current period of decline started in February 2011.
Markit said that demand from the domestic market remained subdued,
while the level of new export orders continued to deteriorate. Companies
reported weaker inflows of new business from clients operating in Europe
and the US. The rate of new export orders fell to its weakest since
August. One-in-five exporting manufacturers reported a decrease in new
orders from overseas.
A continuing cost-cautious approach to hiring, purchasing and stock
holding was noted by Markit. Job losses were reported for the fourth
month running, with the rate of reduction accelerating slightly since
October.
Purchasing activity was scaled back for the eighth straight month,
leading to a further substantial reduction in pre-production stocks,
Markit said.
–London newsroom 0044 207 862 7492; email: dthomas@marketnews.com
[TOPICS: M$B$$$,MABDS$]