"The October PMI survey shows UK manufacturing production rising for the first time in a year, which is a positive in itself. However, there are real concerns that the bounce could prove short-lived. Sluggish demand from both domestic and overseas markets meant October's output growth was dependent on firms eating into backlogs of orders placed in prior months and allowing unsold stock to accumulate."
"We think a good chunk of the jump in the PMI in October reflects the resumption of car production following the JLR cyber attack. Bottom line, a reopening of business will always boost growth temporarily, so we take the one-year high in the manufacturing PMI with a pinch of salt. We think activity will struggle in the coming months as tariff ructions continue to hit global trade."
UK manufacturing output increased in October for the first time in a year. The S&P Global UK manufacturing PMI recorded 49.7 in October, up from 46.2 in September. Jaguar Land Rover resumed car production after a cyber-attack, contributing to the pickup in output. Sluggish domestic and overseas demand meant firms drew down order backlogs while allowing unsold stock to accumulate, creating concern the rise may be temporary. Reopening of business typically gives a short-term boost. Forecasts indicate activity may struggle in coming months as tariff ructions continue to disrupt global trade.
Read at London Business News | Londonlovesbusiness.com
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