British Factories Recorded The Fastest Growth in Nearly 3 Years in November

A survey on Tuesday (December 1st) showed that British factories registered the fastest growth in nearly three years last month as they stockpiled raw materials and scrambled to complete work before new customs rules after Britain’s exit from the European Union came into effect on January 1.

The IHS Markit PMI rose to 55.6 in November from 53.7 in October, its highest level since December 2017 and up from a previous initial reading of 55.2, bucking a bleaker picture in other sectors hit hard by Covid.

Britain and the European Union have yet to reach an agreement to allow duty-free trade from January 1. Even with an agreement, many exporters fear long port delays due to new customs requirements.

Factory production, just one component of the PMI, accelerated, but showed slower growth than it did during the summer after the second wave of COVID-19 cases reduced demand for some consumer goods. New orders fell by the most in six months.

The latest official data showed that factory production in September fell by nearly 8% compared to the previous year, similar to the rest of the economy.