UK manufacturing PMI dips in January 2019, stockpiling at 27-year high says EEF

01 February 2019

UK Manufacturing PMI & Business Expectations Jan19 [Sources: IHS Markit/CIPS]

Commenting on the today's publication of the latest UK manufacturing PMI data, for January 2019, Francesco Arcangeli, Economist at EEF, the manufacturers’ organisation, said:

“UK manufacturing PMI contracted to 52.8, down 1.4 since December, as Brexit uncertainty grows. Stockpiling activities are at 27-year high, with storage of inputs continuing to increase rapidly in preparation for a potential 'no deal'. At the same time, orders are slowing, and employment is contracting.

“The EU manufacturing PMI is also trending downwards, and getting ever closer to the 50 contraction threshold. Germany moved to negative territory for the first time in more than four years and Italy remained below 50 for the fourth month in a row. Italy has now officially entered technical recession, while Germany is teetering above it by an inch. This is bad news for UK exporters, with the risk of a 'no deal' cliff-edge Brexit increasing and global trade headwinds brewing, manufacturers will be concerned at the possibility of a perfect storm.”

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