British manufacturing growth cools suddenly in November
In November, UK manufacturing growth cooled suddenly, as factories grappled with ascending costs caused by the pound’s drop after the UK voted to break up with the European Union, while the weaker British currency failed to spur export orders as much as in previous months.
Thursday's Markit/CIPS British Manufacturing Purchasing Managers' Index edged down to 53.4 from October’s outcome of 54.2, thus undershooting hopes for a soar to 54.5 in a Reuters survey of economists.
Survey compiler IHS Markit told that manufacturing looks set to add to economic growth during the fourth quarter, thus pointing to a solid rate of expansion, remaining above its long-run trend.
The UK’s economy has performed much better than expected since Brexit. However, a bigger test will kick in next year when inflation is supposed to rally steeply, eating into households' spending power.
The PMI's gauge of prices paid by factories for materials as well as energy shot up at a rate just shy of October's almost six-year peak, while prices of finished goods also rallied steeply again.