Financial News: UK Factory Activity Logs Further Solid Expansion

UK Factory Activity Logs Further Solid Expansion

10/01/2024 - 05:32:00 (RTTNews)

(RTTNews) - The UK manufacturing sector continued to expand strongly in September on the back of a resilient domestic market, though the pace growth has eased from August's 26-month high, final survey data released by S&P Global revealed on Tuesday.

The manufacturing purchasing managers' index dropped 51.5 in September from 52.5 in August. However, a reading above 50 indicates expansion. The flash reading was also 51.5.

Among components, output, new orders, and suppliers' delivery times continued to rise amid improved manufacturing operating conditions. On the other hand, employment and stocks of purchases both declined as manufacturers looked to mitigate rising input costs by reducing expenditures in other areas.

Continuing the trend in previous months, export demand was weak in September due to subdued market conditions in Europe, with France and Germany the principal concerns. Lower demand from the US was also a reason for the further fall in export sales.

Firms reduced their workforce numbers in September, reflecting cost reduction initiatives and a more cautious approach from companies amid rising uncertainty about the likely future path for demand.

On the price front, input price inflation accelerated to the quickest since January last year, linked to higher costs for a wide range of raw materials along with increased freight prices due to the re-routing of supply chains away from the Red Sea, which also led to a lengthening of lead times from suppliers for the ninth month in a row.

Looking ahead, the degree of confidence about future output expectations dropped to a 9-month low in September.

"Uncertainty about the direction of government policy ahead of the coming Autumn Budget was a clear cause of the loss of confidence, especially given recent gloomy messaging, though firms are also worried about wider global geopolitical issues and economic growth risks." Rob Dobson, Director at S&P Global Market Intelligence, said.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

U.S. Consumer Sentiment Index Unexpectedly Decreases In October (49 min(s), 16 sec(s) ago)
(RTTNews) - A report released by the University of Michigan on Friday showed an unexpected deterio ...Full Story»

U.S. Producer Prices Unexpectedly Flat In September, Annual Growth Slows Modestly (01 hr(s), 13 min(s), 16 sec(s) ago)
(RTTNews) - With a decrease in prices for goods offsetting an increase in prices for services, the ...Full Story»

U.S. Producer Prices Unexpectedly Unchanged In September (02 hr(s), 58 min(s), 16 sec(s) ago)
(RTTNews) - With a decrease in prices for goods offsetting an increase in prices for services, the ...Full Story»

India Industrial Output Shrinks 0.1% In August (03 hr(s), 01 min(s), 16 sec(s) ago)
(RTTNews) - India's industrial production declined slightly in August, largely led by weaker m ...Full Story»

Turkey Retail Sales Growth Strongest In 5 Months (05 hr(s), 55 min(s), 16 sec(s) ago)
(RTTNews) - Turkey's retail sales increased at the quickest pace in five months in August, the ...Full Story»

Romania Inflation Eases To 4.6%, Lowest In Over 3 Years (06 hr(s), 49 min(s), 16 sec(s) ago)
(RTTNews) - Romania's consumer price inflation moderated further in September to the lowest le ...Full Story»

UK Economy Returns To Growth (07 hr(s), 10 min(s), 16 sec(s) ago)
(RTTNews) - The UK economy returned to growth in August but the pace of expansion was weaker than ...Full Story»

Swiss Consumers Less Pessimistic In September (07 hr(s), 32 min(s), 16 sec(s) ago)
(RTTNews) - Confidence among Swiss consumers remained less negative in August, survey results from ...Full Story»