December 2017 UK Markit/CIPS manufacturing PMI 2 January 2017

A bad number but it hasn’t shaken the pound with GBPUSD down a fraction to 1.3540. Nov was a surprise jump so we’ve given some of that back.

From Markit;

  • Output, new orders and employment all rise at solid rates
  • Input cost and output price inflation ease
  • Part of the increase in new business at UK manufacturers reflected a solid increase in new export sales. Demand improved from clients in Europe, the USA, China and the Middle East
  • Part of the increase in purchase prices was passed on in the form of higher output charges in December. Selling prices rose for the twentieth successive month. Companies also linked the latest increase in charges to stronger demand

Something we (and the BOE) need to watch is inflation in the early part of the year. If the BOE are to be believed, it should be peaking now. Markit’s Rob Dobson highlighted what’s happening in this sector;

“Rates of inflation in input costs and selling prices both moderated in December. Although still running at elevated levels, this at least provides signs that the recent surge in price inflation is starting to abate. This trend should continue at the start of 2018, as supply-chain pressures hopefully ease further.”


Ryan Littlestone

Pin It on Pinterest