A moderate revision higher to the initial estimate but the headline reading still at a 4-month low. Production contracts again as new orders decline and employment both accelerates. S&P Global notes that:
The UK’s industrial slowdown deepened in May, as output, new orders and employment fell at increasing rates. Manufacturers are finding that any potential increase in output from improved supply chains is completely negated by weaker demand, destocking of customers, and a general shift in UK spending away from goods to services. These factors are also leading to a significant drop in demand from abroad amid reports of missing orders from the US and Europe. The shrinking export demand is also exacerbated by the fact that some EU customers are turning to more domestic sources to avoid the complexities of post-Brexit trade. “
Although near-term conditions remain challenging overall, manufacturers still find reasons for optimism including brighter news on the price and supply fronts. Average input costs fell for the first time in three and a half years, allowing some companies to continue efforts to repair and protect margins hit by a long and often costly period. economic inflation
economic inflation
Inflation is defined as a quantitative measure of the rate at which the average price level of goods and services in an economy or a country increases over a period of time. It is the rise in the general price level where you actually buy a particular currency less than it was in previous periods. In terms of evaluating strength or currencies, and therefore foreign currencies, inflation or its measures are very influential. Inflation stems from the general creation of money. This money m
Inflation is defined as a quantitative measure of the rate at which the average price level of goods and services in an economy or a country increases over a period of time. It is the rise in the general price level where you actually buy a particular currency less than it was in previous periods. In terms of evaluating strength or currencies, and therefore foreign currencies, inflation or its measures are very influential. Inflation stems from the general creation of money. This money m
Read this term. The recent recovery in global supply chains is also well underway, with lead times shortening to a near record extent in May.”