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Manufacturing output rose for the first time last month as Jaguar Land Rover (JLR) factories reopened following a cyberattack, according to new data.
Overall activity in the UK manufacturing sector was still in decline, but it was reported that its recent slowdown largely eased during the month.
S&P Global UK Manufacturing PMI The survey, closely watched by economists, showed a reading of 49.7 in October, an improvement from 46.2 in September.
Any reading above 50 indicates that activity is increasing while any score below means it is shrinking.
Industry data indicated that production volumes in the consumer and intermediate goods industries were particularly strong.
This included improvements for some manufacturers in the automotive industry who were encouraged by the phased restart of production at JLR.
The company resumed production at all factories including sites solihull and Halewood, closed in mid-October after the firm’s systems were hacked on August 31.
Rob Dobson, director of S&P Global Market Intelligence, said it would “provide only a temporary increase in output”.
He said: “The October PMI survey shows that UK manufacturing output is growing for the first time in a year, which in itself is a positive thing.
“However, there are real concerns that the bounce may prove short-lived.
“Slack demand from both domestic and overseas markets meant that October’s production growth was dependent on companies clearing the backlog of orders placed in previous months and allowing unsold stocks to accumulate.”
Firms indicated that “difficult” market conditions contributed to the decline in domestic and foreign demand.
New export orders declined for the 45th consecutive month amid reports of weak demand from the US and EU. Asia and this middle east As tariff uncertainties continue to weigh on businesses.
Manufacturing companies, which account for about 9% of the UK economy, also pointed to a slowdown in UK demand amid caution ahead of the autumn budget, along with concerns over potential tax announcements.
Employment declined for the 12th consecutive month as manufacturing companies sought to control costs.
Elliot Jordan-Doch, senior UK economist at Pantheon Macroeconomics, said: “We think a good part of the bounce in October PMI reflects the resumption of car production following the JLR cyber attack.
“The bottom line is that reopening businesses will always boost growth temporarily, so we take the one-year high in manufacturing PMIs with a pinch of salt.
“We think there will be a struggle in activity in the coming months as tariff cuts continue to impact global trade.”