The index UK manufacturing PMI has surprised in the preliminary reading for Septemberrising 1.2 points from 47.3 in August 48.5 current. The result improves market expectations, which expected a milder rally to 47.5. Despite the improvement, this is the second consecutive month that the indicator is in contraction territory.
The services PMI has fallen to 49.2 from 50.9 previously, worsening the 50 point consensus estimate. This is the worst result seen by the indicator in 21 months.
Though modest, the rate of contraction was the fastest since January 2021with companies often commenting on the negative impact of higher costs and a weaker economic outlook on production and customer spending.
The employment remained a bright spot, continuing to rise strongly overall in Septembereven though the job creation rate was unchanged from a 17-month low in August.
However, signs of spare capacity became increasingly apparent as the backlog of work slowed at a faster rate. Although both input costs and production expenses increased at a softer pace, the increases remain the steepest in the history of the survey.
Source: Fx Street
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