United Kingdom factory growth slows

Manufacturing PMI slows

Malaysia's manufacturing PMI back into contraction in September

"This appears to be reflected in the latest PMI, which, while moderately below August's result, still shows UK Manufacturing to be performing strongly".

The composite indicator of manufacturing performance stood at 53.3 in September, up from 51.8 in August.

September marked the 12th straight month of expansion for the manufacturing sector - the longest run of expansion since 2007.

"On the bright side, employment rose for the third successive month", the economist added.

"There was better news on the hiring front, with job creation perking up to a nine-month high".

Stocks of finished goods declined for the sixth consecutive month during September, with panellists reporting efforts to streamline inventories. The increase in input costs was the strongest since May 2011.

"This is also happening alongside rising commodities prices, which are contributing to inflationary pressures across the supply chain". That said, the rate of inflation slowed to the weakest since May and was modest.

Higher new orders, and a subsequent rise in production requirements, encouraged firms to increase their purchasing activity at the end of the third quarter.

"Firms benefited from strong inflows of new work and raised output accordingly. The rate of expansion in production accelerated to the fastest since April, and extended the current sequence of growth to 14 months", Markit said. Also, Vice Chairman Daniel Yergin sold 43,657 shares of IHS Markit stock in a transaction dated Wednesday, July 5th.

Moreover, despite business confidence slipped in September, majority of the surveyed companies remained optimistic that their output will improve in the next 12 months due to new product launches, improving economic climate, marketing activity, and business expansions.

IHS Markit director Rob Dobson said: "Although it looks as if the sector made solid progress through the third quarter as a whole, the growth slowdown in September is a further sign that momentum is being lost across the broader United Kingdom economy. Meanwhile, concerns regarding future business prospects echoed a note of caution, with confidence dipping to the lowest level since December 2012".

The survey mentioned that the increasing costs of raw materials affected the production plans of firms.

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