Brexit Stockpiling Masks Further Downturn In UK Manufacturing

Stockpiling ahead of the now-postponed October 31 Brexit deadline limited the contraction in UK manufacturing activity at the start of the final quarter of the year, according to a business survey, the Financial Times reported. The IHS Markit purchasing managers’ index for manufacturing rose to 49.6 in October from 48.3 in September. Economists polled by Reuters had expected a marginal decline to 48.1. A reading below 50 indicates the majority of businesses reported falling output. However, the increase was largely due to companies increasing their stocks as they prepared for the UK’s expected departure from the UK. The PMI sub-index for stock of purchases rose to 55.57 in October, from 53.64 in September. Read more