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01.09.202011:26:00UTC+00UK Manufacturing PMI At 30-Month High

The UK manufacturing sector expanded at the fastest pace in two-and-a-half years in August as companies restarted operations following coronavirus disease 2019 lockdowns, final data from IHS Markit showed Tuesday.

The IHS Markit/Chartered Institute of Procurement & Supply manufacturing Purchasing Managers' Index rose to a 30-month high of 55.2 in August from 53.3 in July. But this was slightly below the flash estimate of 55.3.

Manufacturing output expanded at the fastest rate for over six years in August. New order intakes also strengthened, whereas the trend in employment remained weak with job losses recorded for the seventh straight month.

Business sentiment regarding future output prospects remained positive in August, staying close to July's 28-month high.

Given the fragility of demand and uncertain outlook, both in terms of COVID-19 and Brexit, policymakers may struggle to prevent a 'surge-then-slump' scenario from developing, Rob Dobson, Director at IHS Markit, said.



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