LONDON: British manufacturers cut jobs last month at the fastest rate since 2012, a survey showed on Monday, as pressures from Brexit and a global trade slowdown caused the sector’s longest decline since the financial crisis.
The IHS Markit/CIPS manufacturing Purchasing Managers’ Index (PMI) sank to 48.9 in November from 49.6 in October, a slightly smaller decline than an initial flash estimate of 48.3.
But the PMI stuck below the 50 level that divides growth from contraction for a seventh consecutive month, the longest such run since 2009, as the country headed for an early election on Dec. 12 intended to end a parliamentary logjam over Brexit.
“November saw UK manufacturers squeezed between a rock and hard place, as the uncertainty created by a further delay to Brexit was accompanied by growing paralysis ahead of the forthcoming general election,” IHS Markit economist Rob Dobson said.
Britain’s economy has slowed since the referendum decision in June 2016 to leave the European Union, with manufacturing especially hard hit due to concerns about disruption to supply chains, on top of pressures from the US-China trade war.
Britain faced the risk of leaving the EU without a transition deal on Oct. 31, prompting many manufacturers to build up emergency stocks of raw materials, before a last-minute delay until Jan. 31.
In November, factories reduced stocks at the fastest rate since June 2018, weighing on overall demand, the PMI showed.
The PMI’s employment component sank to 46.8 from 47.1, representing the biggest loss of jobs since 2012, though less of a fall than in the flash estimate.
Although the unemployment rate is its lowest since 1975, official figures have shown that British employers in the third quarter cut jobs by the most for any quarter in the past four years. Monday’s data suggest this risks continuing.
Manufacturing makes up around 10 percent of Britain’s economy. In the third quarter output in the sector fell by 1.4 percent from a year earlier, while growth in the economy as a whole slowed to 1.0 percent, its weakest since 2010.
Earlier on Monday, the Confederation of British Industry forecast economic growth of 1.2 percent for 2020 and 1.8 percent in 2021, assuming Britain leaves the EU with a Brexit transition deal on Jan. 31 and then strikes a deal to preserve tariff-free trade.
Trade association Make UK cut its forecast for manufacturing growth to 0.1 percent for 2019 and 0.3 percent for 2020, down from a previous forecast of 0.6 percent.
UK manufacturers cut jobs at fastest rate since 2012: PMI
UK manufacturers cut jobs at fastest rate since 2012: PMI
- Britain’s economy has slowed since the referendum decision in June 2016 to leave the European Union
- Manufacturing was especially hard hit due to concerns about disruption to supply chains
Closing Bell: Saudi main index extends gains as market opens wider to foreign investment
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Monday, gaining 153.61 points, or 1.38 percent, to close at 11,321.09.
The total trading turnover of the benchmark index was SR5.85 billion ($1.56 billion), as 207 of the listed stocks advanced, while 55 retreated.
The MSCI Tadawul Index increased, up 21.20 points or 1.41 percent, to close at 1,524.18.
The Kingdom’s parallel market Nomu gained 278.13 points, or 1.17 percent, to close at 24,013.03. This comes as 43 of the listed stocks advanced, while 29 retreated.
The best-performing stock was Saudi Pharmaceutical Industries and Medical Appliances Corp., with its share price surging by 7.26 percent to SR28.94.
Other top performers included Rasan Information Technology Co., which saw its share price rise by 6.51 percent to SR144, and Knowledge Economic City, which saw a 6.25 percent increase to SR13.09.
On the downside, the worst performer of the day was Najran Cement Co., whose share price fell by 2.11 percent to SR6.49.
Almasane Alkobra Mining Co. and Saudi Cable Co. also saw declines, with their shares dropping by 2 percent and 1.88 percent to SR103.10 and SR166.80, respectively.
On the announcement front, Riyad Bank has announced its annual financial results for 2025, with the total income from special commission of financing reaching SR24.1 billion, while net income from special commission of financing amounted to SR12 billion.
In a statement on Tadawul, the bank said: “Net income increased by 11.7 percent mainly due to an increase in total operating income and a decrease in total operating expenses.”
The bank further noted that the rise in total operating income was primarily driven by increased revenue from fees and commissions, trading activities, special commissions, gains on non-trading investments, and other operating sources. This growth was partially tempered by declines in exchange and dividend income.
“Net provision of expected credit losses and other losses decreased by 15.8 percent due to a decrease in impairment charge of credit losses and impairment charge for other financial assets, partially offset by an increase in impairment charge for investments,” it added.
RIBL’s share price closed at SR18.18 on the main market, marking a 1.43 percent increase.
