FX.co ★ UK Manufacturing PMI Revised Lower

The S&P Global UK Manufacturing PMI edged up to 50.6 in November, an improvement from 50.2 in the previous month. Although slightly revised from the preliminary estimate of 51.2, it still surpassed the initial market forecast of 50.4. This marks the second consecutive month of growth in the UK's manufacturing activity after a year-long stretch of contraction. Production levels increased for the third consecutive month, with widespread gains across the consumer, intermediate, and investment goods sectors, buoyed by a rise in new orders for the first time in 15 months. However, manufacturing employment continued its decline for the fourteenth month, as companies reported increased labor costs due to the UK's recent insurance contributions adjustments. Despite this, uncertainty stemming from the Autumn Budget has lessened, resulting in a slower decrease in employment. On the pricing front, both input and output inflation saw a rise during this period, attributed to increased wage costs and escalating wholesale prices of metals used in electronics.