UK Factories Start Stockpiling Again Before New Brexit Deadline: PMI

Some British manufacturers resumed stockpiling in September as they geared up for the latest Brexit deadline due on 31 October, a survey showed on Tuesday.

But the pace of contraction eased with the PMI’s main gauge of activity rising to a four-month high of 48.3, helped by some companies accumulating stocks and buying more inputs for the first time in recent months.

Britain’s economy grew strongly in the first three months of 2019 when factories rushed to stock up on parts and finished goods rather than face the risk of border disruptions after March 29, the original Brexit deadline.

Prime Minister Boris Johnson has said he will make sure Brexit happens on 31 October. But lawmakers have approved a law requiring him to seek a new delay, if London and Brussels have not renegotiated a transition deal in time.

ESM