Workers in a factory

Picture copyright

UK manufacturing remained on a “agency footing” final month, with the weaker pound boosting exports, in line with a closely-watched survey.

Nonetheless, the autumn within the pound additionally had a “marked” influence on prices, with the value of imported items rising.

Markit mentioned about 90% of firms reporting rising import prices made reference to the change fee.

The newest Markit/CIPS purchasing managers’ index (PMI) for manufacturing stood at 54.three final month.

That was down from September’s determine of 55.5, however nonetheless above the 50 mark which signifies enlargement.

Worth inflation for items being purchased by producers hit its highest fee for greater than 5 years, and was at its fourth-highest because the survey started in 1992.

Rob Dobson, an economist at Markit, mentioned: “The UK manufacturing sector remained on a agency footing in October and may return to development within the fourth quarter.

“Regardless of slowing from September’s highs, development of output and new orders continued to defy expectations, rising at marked charges and supporting the quickest job creation in a yr.

“The principle matter of the newest PMI survey was, nevertheless, the influence of the sterling depreciation on producers.

“On the constructive facet, the enhance to competitiveness drove new export order inflows larger, offering a key help to output volumes.

“The draw back of the weaker foreign money is changing into more and more evident, nevertheless, with elevated import costs resulting in one of many steepest rises in buying prices within the close to 25-year survey historical past.”

The Financial institution of England meets this week for its newest policymaking assembly, though it isn’t anticipated to announce one other reduce in rates of interest.

“If indicators of ongoing stable output enlargement and rising value pressures are additionally skilled elsewhere within the economic system, the possibilities of an additional reduce in rates of interest earlier than year-end are just about nil,” Mr Dobson mentioned.