British manufacturing PMI keeps expansion in November

The British manufacturing Purchasing Manager Index (PMI), a gauge of industry activities, registered 52.7 in November, down from October's 16-month high of 55.2 (originally reported as 55.5), survey provider Markit released on Monday.

Manufacturing production expanded for the thirty-second successive month in November.

The consumer goods sector gained the strongest expansion in the three main sectors, and the investment goods sector also saw a solid growth. However, the intermediate goods sector registered a sharp growth slowdown.

According to Markit, price pressures remained on the downside, with average input costs and factory gate selling prices both falling during the latest survey month.

"UK manufacturing is moving back into expansion mode during quarter four, as it starts to reverse the losses sustained in the prior quarter," said Rob Dobson, Senior Economist at survey compilers Markit.

"Although the pace of growth so far is only very modest, it positions manufacturing as less of a drag on the broader economy. Robust service sector growth will nevertheless be needed to achieve the 0.6 percent fourth quarter GDP expansion still required to meet the 2015 growth target outlined in the Chancellor's Autumn Statement," said Dobson.

"Market forces continued to be strong, although at a softer and less robust pace than last month, as purchasing activity continued along its upward trend," commented David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply.

"Buoyed up by continued falls in commodity prices and a steady rise in new export orders and improved domestic demand, once again larger companies took advantage of these ripe conditions following last month's trend," said Noble. Endit