The U.K. manufacturing sector growth eased unexpectedly in December, due to a further slowdown in growth of output and new orders, survey data from Markit Economics showed Monday.
The Markit/Chartered Institute of Procurement & Supply Purchasing Managers’ Index for manufacturing fell to 51.9 in December from 52.5 in the previous month.
However, any reading above 50 indicates expansion in the sector. Economists had expected the index to improve to 53.0.
Manufacturing production climbed for the thirty-third successive month in December, though the rate of expansion eased over the month.
New export orders grew for the fourth month running in December, despite the rate of increase slowed to the weakest since September.
Manufacturers raised their staffing levels modestly in December. Employment rose for thirtieth time in the past 32 months, following no change in November.
On the price front, input prices continued to fall sharply in December, owing to recent falls in global commodity prices, especially oil. This forced firms to reduce their selling prices further.
“If this ongoing mix of subdued growth and weak price pressures remains prevalent elsewhere in the economy, the Bank of England will likely continue to push any potential rate increase later into 2016,” Rob Dobson, Senior Economist at Markit, said.
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