UK January final manufacturing PMI 54.1 vs 52.9 prelim

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Latest data released by Markit – 1 February 2021

The preliminary report can be found here. A positive revision to the initial estimate but the reading still marks a three-month low as virus restrictions and supply-chain disruptions impact manufacturing activity to start the new year. Markit notes that:

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“Whereas many countries are seeing manufacturers
provide a much-needed support to economic growth
as the service sector is hit by COVID-19, the UK’s
manufacturing sector has come close to stalling. A
mixture of harsher COVID-19 restrictions and Brexit led
to near-record supply-chain disruptions, lower exports
and increased costs. The impact was felt most at
consumer goods producers, who reported steep falls in
output and new orders. There were also early signs that
smaller companies were being hit harder by the tougher
operating environment than medium- and larger-scale
producers.

“The hope is that the current constraints will start to
ease once COVID-19 restrictions are lifted, vaccines
are rolled out and ports, suppliers and manufacturers
adapt to the new trading environment post-Brexit. If
so, supply, demand and production bottlenecks should
slowly work through the system and growth will not be
knocked too far off course through 2021. However, there
is no swift end in sight to these headwinds, and the
longer the current circumstances remain the greater the
potential damage to the sector and its suppliers.”

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