Share

UK manufacturing growth unexpectedly picks up in September

UK manufacturing growth unexpectedly picked up in September, rounding off the third quarter on an upbeat note.

IHS Markit’s Purchasing Managers Index rose to 53.8 from a revised 53 in August and beating estimates for a drop to 52.5. Growth in output and new orders accelerated, while exports saw a modest recovery after a slump the previous month.

“September saw a mild improvement,” said Rob Dobson, a director at IHS Market. Still, “the latest survey is consistent with output expanding at only a moderate pace.”

The report showed that business optimism improved, although some firms noted that Brexit and exchange rate movements were making their forecasts less certain. There were also signs of strengthening inflation pressures for both input costs and output prices.

That will be of interest to Bank of England (BoE) policy makers, who are on the lookout for signs of domestically generated inflation as they gauge when next to lift the benchmark interest rate after a hike in August.

In an early sign of that interest rate increase on the economy, UK consumer borrowing posted its weakest growth in three years in August, following years of rapid expansion fuelled by a rapid buildup of debt used to finance cars and other goods.

The hike also prompted homeowners to lock in lower borrowing costs, with remortgage approvals gaining the most since the previous BOE increase in November.

BOE officials are due to get more insight later this week, when Markit publishes similar indices for the UK’s construction and dominant services sector.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.90
-0.0%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.1%
Platinum
907.85
+1.2%
Palladium
1,012.25
+1.1%
Gold
2,221.12
+1.2%
Silver
24.86
+0.9%
Brent-ruolie
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders