PMI of Markit manufacturing industry in UK in August - 2019 International Heat Treatment Exhibition

     On Monday (September 2), in European session, the UK released important August PMI data of Markit manufacturing industry, which was not as expected. After the data was released, the short-term fluctuation of the pound against the US dollar was not big. However, due to the fear of hard brexit, the pound had fallen more than 60 points against the US dollar to the nine day low before the data was released.
      According to data from Huitong app, the PMI of Markit manufacturing industry in the UK actually released 47.4 in August, expected 48.4, with a previous value of 48. The data also showed that manufacturing PMI in the UK fell to its lowest level since July 2012 in August. Mark it economist rob Dobson commented on the data that the high level of economic and political uncertainty, combined with global trade tensions, led to the poor performance of the UK's manufacturing industry in August. The company's situation deteriorated to the worst in seven years as new orders fell by the largest margin since mid-2012 and the company cut production scale. According to the relationship between the historical performance of the data and the official data of the British Bureau of statistics, the latest PMI output index shows a quarterly contraction of nearly 2%. Chart: the current pattern of brexit is not optimistic. After Johnson decided to suspend Parliament, the risk of "no agreement to leave Europe" is rising. France, Spain, Germany and Portugal, including Britain, are ready to "clean up the mess".

      According to the financial times, factory closures, steel mills on the verge of bankruptcy and signs of sale by big British industrial companies have brought Britain back to the Great Depression decades ago. Analysts say the biggest risk is that the uncertainty surrounding brexit has led to problems such as reduced investment and productivity. For many manufacturers who purchase and export parts, the tariff and customs inspection caused by the non agreement will be a big problem. Figure: historical PMI data of British Markit manufacturing industry shows that the uncertainty of brexit has caused losses, and the production of British manufacturing industry is declining. Even though brexit is pushed to the end of October, the automobile manufacturers are still insufficient to make up for the losses. Manufacturing activity began to decline earlier this year after factories quickly accumulated raw materials and parts to complete products as soon as possible due to concerns about brexit without an agreement.
      Weak global demand and Global trade frictions also hurt UK manufacturing, with manufacturing activity slowing in Germany, China and the US. Analysts think the UK plant will be harder. At present, Britain is the ninth largest manufacturing country in the world. Analysts believe that part of the impact on the UK manufacturing industry may be temporary or cyclical, but some are permanent and will drag down the industry for a long time. It is uncertain whether the UK manufacturing industry will recover before the global recovery in 2021. At 16:35 Beijing time, the price of Huitong software was quoted, and the pound was at 1.2102/04 against the dollar.