–Adds Detail Version Transmitted At 0937 GMT
–UK Oct CIPS Manufacturing PMI 54.9 Vs 53.5 In Sep – Markit/Reuters
–UK Manufacturing Employment Sees Fastest Rise Since June
LONDON (MNI) – The pace of growth in UK manufacturing activity
picked up in October, showing an unexpected rise at the start of the
fourth quarter.
The latest Markit/Chartered Institute of Purchasing and Supply
survey, published by Reuters, showed the headline October activity index
rising to 54.9 from 53.5 in September, confounding analysts’ forecast
for a slowdown, with the median prediction for a 53.0 outturn.
This was the first monthly rise in the index since May. The CIPS
surveys had been showing a clear trend of decelerating growth.
CIPS said output growth also accelerated in October, for the first
time since March, with new export orders increasing at their fastest
pace in five months, and posting the 17th consecutive monthly increase.
These latest data will underscore most analysts’ belief the Bank of
England Monetary Policy Committee will not relaunch Quantitative Easing
at its November monthly meeting.
This was the 15th consecutive month in which manufacturing activity
came in above the 50 contraction/expansion level.
The survey showed employment in the manufacturing sector rising, at
its fastest rate since June, and an acceleration in export orders.
Inflation pressures are mounting in the manufacturing sector.
The CIPS October manufacturing survey found average input costs
rose for the 14th consecutive month, with higher prices across a wide
range of items including chemicals, copper, food products, metals,
packaging materials, paper and timber.
CIPS said a portion of the higher costs were passed on by
manufacturers – pushing the inflationary pressure further down the
pipeline.
“An improvement in the UK manufacturing PMI for the first time
since May’s 15-year high will provide reassurance that manufacturing
remained a driver of UK economic growth at the start of the final
quarter,” Rob Dobson, senior economist at Markit, said.
“Rates of expansion in output and new orders strengthened following
the sharpest gain in new export orders for five months, with the export
performance of intermediate and investment goods producers especially
robust,” Dobson added.
–London newsroom 0044 207 862 7491; email:drobinson@marketnews.com
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