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‘Brexit-buying’ and port delays lead to stockpiling and supply chain disruption for UK manufacturers

The UK manufacturing sector had a mixed end to 2020, with clients bringing forward orders to beat the end of the Brexit transition period boosting inflows of new orders and pushing output higher.

However, port delays and other logistical disruptions meant that supply chain delays lengthened to one of the greatest extents in the history of the IHS Markit and Chartered Institute of Procurement & Supply (CIPS) Purchasing Managers’ Index (PMI).

Survey data collected from 4 to 18 December showed the index rising to a three-year high of in December.

The level of the PMI was mainly boosted by a marked lengthening of suppliers’ delivery times and substantial increase in stocks of purchases as part of preparations before the end of the transition period on 31 December.

Manufacturing output rose for the seventh month running in December, albeit to a lesser extent than a month ago.

Growth was registered across

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January 2021

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