The PMI fell from 54.2 in October to 53.4 last month. However, as the figure is above 50, it demonstrates the market is still expanding. This marks the fourth successive month of growth in the sector, as it steadies following the turmoil caused by June’s EU referendum Manufacturing firms have reported a steady rise in demand from the US, Europe and Middle East, thanks to the weak pound following the Brexit vote.
Markit said the sector remains ‘in good health’, although the fall in Sterling has had a knock-on effect on production costs, the increase in which has led to a rise in the prices factories charge for their goods.
“Rising consumer demand and business-to-business spending is helping manufacturers to grow at a robust clip,” said Rob Dobson, senior economist at Markit. “However, the trend in new orders for investment goods such as plant and machinery has eased sharply so far in the fourth quarter, and will need to improve if investment is to continue to contribute positively to economic growth.”
