UK manufacturing PMI surprises positively in October

The manufacturing sector activity in the UK economy stalled its downtrend and rose unexpectedly in the month of October, the latest data from Markit revealed on Wednesday.

The manufacturing Purchasing Managers' Index (PMI) in the UK arrived at 56.3 points in October, as compared to a previous 56.0 (revised higher from 55.9) reading. Markets had predicted the PMI to tick lower to 55.8.

Key Points:    

Output and new order growth remain robust.

Input cost and output price inflation accelerate.

Rob Dobson of Markit commented in the release, “UK manufacturing made an impressive start to the final quarter of 2017 as increased inflows of new work encouraged firms to ramp up production once again. The sector looks to be achieving a quarterly rate of expansion close to 1%, therefore sustaining the solid pace of growth signaled by the official ONS estimate for the third quarter. The domestic market remained strong, whereas new export orders increased at a slightly slower pace, the latter showing signs of being hit by the recent strengthening of sterling.”