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Manufacturing output shrank for seventh month in a row

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MANUFACTURING output shrank for the seventh month in a row last month, a closely watched survey revealed today, although the pace of decline was slower than expected.

• The latest Markit/CIPS purchasing managers’ index (PMI) produced a headline reading of 49.1 for November

• Marks an improvement of 47.3 on the previous month, but below 50 seperates expansion from contraction

The latest Markit/CIPS purchasing managers’ index (PMI) produced a headline reading of 49.1 for November, an improvement on 47.3 in the previous month but below the 50 mark that separates expansion from contraction.

A contraction in the intermediate goods sector - sub-components later used in the manufacture of another product, such as a gear box in a car - and capital goods such as machinery offset gains in the consumer goods sector, Markit said.

Samuel Tombs, UK economist at Capital Economics, said: “The small improvement in the manufacturing survey in November does little to change the fundamental picture of a struggling industrial sector.”


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