Activity in the UK manufacturing sector improved more than expected in December, IHS Markit’s final report confirmed on Monday.
The purchasing managers index IHS Markit / CIPS UK Manufacturing PMI seasonally adjusted revised up to 57.5 points in December, compared to the 57.3 expected and the first reading of 57.3.
Key Comments:
UK Manufacturing PMI reaches a maximum of 37 months in December.
Near-record increases in supplies stocks and purchasing activity.
Strong demand and transportation issues put pressure on supply chains.
Rob Dobson, Director of IHS Markit, commented on the survey:
“Manufacturing PMI rose to its highest level in more than three years in December, mainly reflecting a boost from last minute preparations before the end of the Brexit transition period. Customers, especially those in the EU, advanced purchases, temporarily boosting sales. This momentum seems likely to reverse in the first months of 2021, signifying a weak start to the year. It should also be noted that the December PMI data was collected before the border closures, which will have caused further disruptions in logistics and production for many companies. “
“It is concerning that the manufacturing sector was already beset by near-record delays in the supply chain even before the closure of the Dover-Calais shipments. Manufacturers reported delays in the transport of goods, especially at ports, in addition to shortages of certain raw materials and a lack of capacity from suppliers. Supplier lead times, a benchmark for supply chain pressures, were lengthened in December to a degree similar to that of the first wave of the pandemic. “
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