The weak U.K. Pound failed once again to stimulate activities in the manufacturing sector in December as Brexit continued to impact business confidence.
The Manufacturing Purchasing Managers’ Index expands by 56.3 in December, down from 58.2 in November and below the 58 expected by economists, the IHS Markit reported on Tuesday.
While expansion in the manufacturing industry is slower than expected, the report showed quarterly average rose to the highest since 2014. Meaning, growth in the manufacturing sector remained consistent even though it’s below experts’ projection.
“Expansion remained comfortably above long-term trend rates,” said Rob Dobson, Director at IHS Markit. “The sector has therefore broadly maintained its solid boost to broader economic expansion in the fourth quarter. The outlook is also reasonably bright.”
Also, the report showed that while growth in factory production, new orders, and employment slowed in December, the growth recorded still reflect solid gains in the month. Especially, with the average input costs dropping to a four-month low in December.
This, could further ease rising consumer prices and boost sales as the U.K. looks to exit the European Union in 2019.
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