UK DATA: December Manuf PMI: Downward Revision, Continued Job Losses Noted

Downward revision to the UK December manufacturing PMI to 50.6 vs 51.2 flash, albeit still above November’s 50.2. 

While there were increases in both production and new orders in December, it’s not signalling a meaningful increase in demand. Meanwhile, employment levels are still falling, even if the rate of decline has eased.

Key notes from the release:

• “The latest increase in manufacturing production mainly reflected a building-up of stocks of finished products and efforts to clear backlogs of work. UK manufacturers also benefited from several reduced headwinds towards the end of the year, as the negative impacts of uncertainty surrounding the Autumn Budget, tariffs and the JLR cyber-attack all moderated.”
• “A slight gain in new work intakes also contributed to the expansion of production volumes. Incoming new business rose for the first time in 15 months.” … “The domestic market was the main growth spur for new orders, as intakes of new work from overseas contracted for the forty-seventh successive month in December”
• “Although manufacturing employment decreased for the fourteenth month running in December, the rate of job loss was the weakest during that sequence of decline.”
• “December saw a mild increase in price pressures, as input cost inflation accelerated and output charges rose after declining in November.”
• “Business confidence about the year ahead outlook dipped from November's nine-month high in December”