The revision higher reflects easing downturns in output and new orders on the month. However, similar to the euro area, employment conditions are seen weakening further for UK’s manufacturing sector in November. S&P Global notes that:
“Although the downturn in production eased sharply in
November, the latest PMI report brings little festive cheer
when the finer details are considered. With new order
inflows and exports continuing to fall sharply, and clients
destocking, a sustained meaningful growth revival still
looks elusive. Manufacturers are preparing for tough times
ahead, with their continued caution leading to cutbacks in
staffing, inventories and purchasing.
“The underlying sector dynamics further highlight how
this combination of high uncertainty and low confidence
is impacting performance. The latest scaling back of
production was mainly driven by weak business-to-business and capital spending, as output and new orders
contracted in both the intermediate and investment
goods sectors. In contrast, activity posted a solid uptick at
consumer-facing manufacturers.”
