MNI: UK Dec CIPS Manufacturing PMI Slows To 56.3; Nov 58.2

By David Robinson

     LONDON (MNI) - UK manufacturing continued to expand at a solid pace in

December but less rapidly than in November, the IHS Markit/CIPS survey showed.

     The headline December manufacturing PMI came in at 56.3, down from

November's 51 month high of 58.2. While output growth accelerated in

intermediate and investment goods it slowed in the consumer goods sector,

reflecting the weakness in consumption with real earnings growth having fallen

into negative territory.

     New export sales were strong as a result of robust demand from continental

Europe, the US, China and the Middle East. The final Eurozone PMI for December

came in at 60.6, with record or near record highs in Germany, Netherlands,

Austria and Ireland.

     The strength of UK manufacturing reflects the European sector's strength

and the near term outlook for both UK and Eurozone manufacturing is positive.

     "Although growth of output and new orders moderated during December, rates

of expansion remained comfortably above long-term trend rates. The sector has

therefore broadly maintained its solid boost to broader economic expansion in

the fourth quarter," Rob Dobson, Director at IHS Markit, said.

     Input costs remained elevated but dipped to a four month low, with input

shortages reported.

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com

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