UK January final manufacturing PMI 47.0 vs 47.3 prelim

<ul><li>Prior 46.2</li></ul><p>Output declined for an eleventh straight month, with the drop in January not much changed to that in December. New orders also declined while employment conditions also weakened, so that isn't too pretty despite an easing in the downturn to start the year. S&amp;P Global notes that:</p><p>“The downturn in UK manufacturing continued at the
start of 2024, with output, new orders and employment all
reduced in January. The contraction was widespread, with
declines in all three variables seen across the consumer,
intermediate and investment goods sub-industries. The
ongoing weakness is leading to an increasingly costcautious approach at manufacturers, compelling cutbacks
in purchasing and stock holdings as companies aim to
achieve efficiencies, protect cash flow and defend fragile
margins.
</p><p>"Cost and stock management initiatives are being
complicated by the Red Sea crisis. Diverting purchased
inputs, especially those sourced from the APAC region,
around the Cape of Good Hope is raising prices and
extending supplier lead times. Some of our panel
members estimate that a minimum of 12-18 days could be
added to some expected deliveries, disrupting production
schedules and raising inflationary pressures at a time
when manufacturers are already struggling with weak
demand both at home and overseas. One small ray of light
from the January data is manufacturers expect some of
these issues may be temporary, with an increasing number
(over 50%) still forecasting output to be higher 12 months
out.”</p>

This article was written by Justin Low at www.forexlive.com.