MNI: UK March Manuf Output Lower in April: IHS Markit

--UK April Manufacturing PMI 53.9 Vs Revised 54.9 in March

     LONDON (MNI) - UK manufacturing sector activity edged lower in April, the

IHS Markit/CIPS Purchasing Managers' Index (PMI) showed.

     The headline manufacturing PMI fell to 53.9 in April from a revised figure

of 54.9 in March. Despite the fall, the index has sat above the neutral-50 mark

for twenty one consecutive months and it reflects elevated levels of output

growth. 

     The 53.9 outturn was, however, significantly below median estimates from

analysts of 54.8. 

     According to IHS Markit, firms attributed the increase in output growth to

solid inflows of new work from both domestic and overseas markets in March. 

     The pace of new export orders fell in March, to a five-month low, but

remained in expansion mode for the twenty-third month running. The latest

expansion in new export business was linked to successful marketing campaigns, a

favourable exchange rate and improved sales volumes to existing clients. 

     Whilst staffing levels rose for the 20th month running, they did so at the

slowest pace during the year so far. This, combined with a mild deceleration in

the rate of expansion in new orders, meant companies were able to make further

inroad into backlogs of work. Consequently, outstanding business fell marginally

during the month of March.  

     "The start of the second quarter saw the UK manufacturing sector lose

further steam. The headline PMI dipped to a 17-month low as growth of

production, new business and employment all slowed," Rob Dobson, Director at IHS

Markit, said.

     "While adverse weather was partly to blame in February and March, there are

no excuses for April's disappointing performance, making the chances of a near

term hike in interest rates by the Bank of England look increasingly remote," he

added. 

     "Looking ahead, the trend in manufacturing production is likely to remain

subdued. Weak demand meant firms are seeing backlogs of work fall and stocks of

unsold goods rise, limiting the need for output to rise in May. Business

optimism has also dipped to a five-month low as concerns about Brexit, trade

barriers and the overall economic climate remained widespread," Dobson added. 

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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