UK September final manufacturing PMI 44.3 vs 44.2 prelim

<ul><li>Prior 43.0</li></ul><p>All five sub-indices (new orders, output, employment, stocks of purchases, supplier delivery times) showed declines in September as UK manufacturing activity stays in contraction territory. Demand conditions remain weak but at least that is helping to lead to a decrease in input costs. Markit notes that:</p><p>“September saw the manufacturing sector still mired in
contraction territory, as weak conditions at home and
abroad hit new order intakes and led to a further scaling
back of production volumes. The cost-of-living crisis and
recent rapid rise in interest rates are taking their toll,
according to producers, raising the possibility of the
broader UK economy slipping back into contraction during
the second half of the year.
</p><p>“The downturn is being felt throughout the manufacturing
sector, with demand falling from both households and
businesses. The resulting rise in caution at manufacturers is
driving risk aversion and shifting their focus towards margin
protection and cost control, highlighted by further cuts in
employment, purchasing and inventories. These all point to
companies battening down the hatches in expectation of
stormy conditions ahead.
</p><p>"There was slightly better news for producers on the price
front, as a mix of lower costs and rising selling prices aided
margin protection efforts. However, with oil prices on the
rise, the environment may become less disinflationary in
the coming months.”</p>

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