UK: Upside surprise in manufacturing PMI - TDS

Analysts at TD Securities note that UK’s manufacturing PMI surprised to the upside for the month of December, rising about half a point to 54.2 (Nov was revised up as well).

Key Quotes

“Gains were driven by new orders and increased purchases of stocks, and firms said that this was driven by preparations for Brexit disruptions. The Output component pointed to a slower pace of expansion than in November. This is likely a theme we'll see more of in the next few months as firms ramp up inventory accumulation as they fear disruptions around the end-March Brexit date, and while it may boost growth temporarily in the near-term, it will eventually need to unwind, dragging on growth later this year.”