UK manufacturers report near-survey record increases in stock holdings

The average PMI reading during quarter four of 2018 was the weakest since Q3 2016 (the quarter containing the first survey conducted after the EU referendum). The average posting during 2018 (53.9) was also below 2017 (55.9).

The rise in the PMI level during December was mainly driven by stronger inflows of new business and a solid increase in stocks of purchases. Movements in both mainly reflected Brexit preparations by manufacturers and their clients. Output also increased, but at a slower pace than during November.