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Pre-Brexit stockpiling drives UK manufacturing PMI to new high

Source: Xinhua| 2019-04-02 04:43:24|Editor: Mu Xuequan
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LONDON, April 1 (Xinhua) -- UK manufacturing purchasing managers' index stood at a 13-month high of 55.1 in March, mainly boosted by businesses' stockpiling of raw material and finished goods for fear of a disruptive Brexit, a research said on Monday.

The figure, up from a revised reading of 52.1 in February, means the UK manufacturing PMI has remained above the 50.0 benchmark for 32 months in a row, according to the research by IHS Markit.

"Manufacturers reported a surge of business activity in March as companies stepped-up their preparations for potential Brexit-related disruptions. Output, employment and new orders all rose at increased rates as manufacturers and their clients raced to build safety stocks," said Rob Dobson, Director at IHS Markit.

Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply, said firms attempted to "guarantee certainty of supply, lock in good price deals and protect their operations from withering" under the pressures of uncertainty.

However, companies indicated that future output growth may be constrained as the current strong pace of inventory building at both manufacturers and their clients is unwound over the coming year, the research said.

British lawmakers on Friday voted to reject Prime Minister Theresa May's Brexit deal, dealing a third blow since January to the Withdrawal Agreement, which sets out the terms of Britain's departure from the European Union (EU). Britain now has until April 12 to inform the EU about alternative arrangements for Brexit, or leave the Union on that date with no deal.

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