Latest data released by Markit - 1 December 2020
The preliminary report can be found here. The headline reading is a 35-month high as UK manufacturing production increased further in November with some signs of improving demand but there is a marked divergence between the sub-sectors.
Intermediate and investment goods industries showed a robust performance but the consumer goods sector experienced another downturn.
The details also show that new work from overseas was in part boosted by EU clients bringing forward purchases before the end of the Brexit transition period.
Markit notes that:
"Growth of the UK manufacturing sector picked up in November, temporarily boosted by 'Brexit-buying' among clients and the ongoing boost from economies re-opening following lockdowns earlier in the year. The effects were strongest felt among firms supplying inputs to other companies as warehouses were restocked, and among producers of investment goods such as machinery and equipment. The weak point was the consumer goods industry, which saw lower output and new order intakes amid depressed household sentiment caused by mounting job losses and the UK re-entering lockdown."Whether the upturn of manufacturing production can be sustained into the new year is therefore highly uncertain, especially once the temporary boosts from Brexit purchasing and stockbuilding wane. On this front some reassurance is provided by the survey's gauge of business optimism. Confidence has risen to a level not seen since late-2014, with over threefifths of manufacturers (61%) still expecting to raise output over the coming year. On the other hand, many manufacturers remain very concerned about the outlook and generally reluctant to expand capacity, hence employment fell for the tenth month in a row."
