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LONDON, Dec 1 (Reuters) – British manufacturing activity fell for a fourth month in a row in November, as businesses faced the weakest overseas demand in two and a half years, leading to job cuts and confidence about the year ahead. , a survey showed Thursday.
The figures add to signs that Britain’s economy has slipped into recession, although there was a brighter outlook for the Bank of England as factory output price inflation was the lowest since March 2021.
The S&P Global/CIPS Manufacturing Purchasing Managers’ Index (PMI) rose to 46.5 in November from a two-and-a-half-year low of 46.2 in October. November’s reading is below the 50 mark that separates growth from contraction, although a shade stronger than the previous ‘flash’ reading that has persisted since October.
Except during the pandemic, October and November have been the weakest two months for manufacturing PMIs since 2009 after the global financial crisis.
Export orders fell at the fastest pace since May 2020, at the height of the COVID-19 pandemic, reflecting reduced demand from China, the United States and the European Union.
“Exporters reported that client hesitancy and global market conditions contributed to the decline. Some also noted that issues related to Brexit and supply chain tensions exacerbated the impact,” IHS Markit said.
Manufacturers cut jobs for the second month in a row and at the fastest pace since November 2020.
Expectations for future output remained positive but by the narrowest margin since April 2020.
The PMI data reflected the slowdown seen in the Confederation of British Industry’s monthly gauge of industrial orders, although the CBI measure remained above its long-term average.
The most recent official data showed that factory output in September was 5.8% lower than a year earlier.
Last month Britain’s Office for Budget Responsibility estimated that the economy is already in a recession that will last until the end of next year and cost 2% of economic output.
Reporting by David Milliken; Editing by Toby Chopra
Our Standards: The Thomson Reuters Trust Principles.
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