UK manufacturing activity contracts in November: survey

Source: Xinhua| 2019-12-02 21:17:31|Editor: xuxin
Video PlayerClose

LONDON, Dec. 2 (Xinhua) -- The purchasing managers' index (PMI) for the British manufacturing sector dropped to 48.9 in November amid Brexit delay and uncertainty from the forthcoming general election.

According to a survey published on Monday by The IHS Markit/CIPS, a London-based global information provider, the manufacturing PMI reading was 48.9 in November, down from 49.6 in October.

A reading above 50 indicates expansion, while a reading below reflects contraction.

The survey showed that output, new orders and employment all declined in November. New orders fell for the seventh month in a row. Employment decreased for the eighth straight month, with the steepest pace of job losses since September 2012.

Rob Dobson, director at IHS Markit, said: "November saw UK manufacturers squeezed between a rock and hard place, as the uncertainty created by a further delay to Brexit was accompanied by growing paralysis ahead of the forthcoming general election."

"Downturns in output and new orders continued amid a renewed contraction in exports. The pace of job losses also hit a seven-year high as firms sought to reduce overheads in the face of falling sales," Dobson said.

"Manufacturers across all sectors will be hoping that the New Year brings clarity on the political, trade and economic fronts, providing a more certain foundation to plan and rebuild as the next decade begins," Dobson added.