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British factories posted output growth slow and costs rose in October as they struggled to deal with supply constraints, underscoring the dilemma facing the Bank of England.
Source: IHS Markit.
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The headline IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index increased for the first time in five months to 57.8 from 57.1 September.
Meanwhile, the closely watched output index dropped to 51.3, its lowest in eight months from 52.7 in September. Prices set by factories rose by a significant margin in the survey’s more-than-20-year history as they paid more prices for various inputs.
Some companies stated that overseas clients postponed or cancelled orders after port delays and freight capacity challenges.
Rob Dobson, IHS Markit director stated that the low-growth environment is emerging in line with a severe surge in inflationary pressures, with manufacturers posting both a near-record increase in input costs.
The “flash” preliminary score for the nation’s dominant services sector posted on Oct.22, painted an improved picture with IHS Markit’s index rose to the highest level in 3 months.
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