Press comment: UK PMI lower despite weak pound


If you are covering the UK PMI data released today, please see the following commentary from Sacha Chorley, portfolio manager at Quilter Investors, the multi-asset investment manager:

“Manufacturing has been crushed by concerns over Brexit, with so many uncertainties surrounding imports and exports leading to a steady decline in manufacturing growth, which is headed back toward the levels seen immediately after the referendum.

“It is particularly notable that this is happening amid a climate of a depreciated pound. Normally this would be expected to stimulate export orders, so it is possible the figures may have been weaker without the exchange rate on the pound falling. The sub-50 employment score is also notably weak, indicating firms are trying to keep a lid on hiring. This will be linked to new order expectations and cost cutting.

“Having said that, it is not all doom and gloom. PMI scores above 50 are still considered to be in positive growth territory so UK manufacturing is still moving in the right direction, albeit at a slower rate than most other developed countries. 

October Manufacturing PMI: Europe and North America

October Manufacturing PMI

“For investors looking at different markets globally, PMIs are an important indicator of future growth prospects and the health of the economy. But it is important to keep things in perspective. The UK is suffering from the lag effect of Brexit, but global growth conditions still appear reasonably strong. “ 

 

Notes to editors

Quilter Investors is part of Quilter plc. It provides multi-asset investment solutions designed for advised clients in the UK and internationally and manages 18.8bn on behalf of its investors (as at 30 September 2018).

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £118.1 billion in customer investments (as at 30 September 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• The private client advisers business is now Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

Past performance is not a guide to future performance and may not be repeated. Investment involves risk. The performance data does not take account of the commissions and costs incurred on the issue and redemption of shares.  The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rate changes may cause the value of overseas investments to rise or fall. 

This communication is issued by Quilter Investors Limited (“Quilter Investors”), Millennium Bridge House, 2 Lambeth Hill, London, United Kingdom, EC4V 4AJ. Quilter Investors is authorised and regulated by the Financial Conduct Authority.

Any opinions expressed in this communication are subject to change without notice and may differ or be contrary to opinions expressed by other business areas or companies within the same group as Quilter Investors as a result of using different assumptions and criteria.

Quilter Investors uses all reasonable skill and care in compiling the information in this communication which is accurate only on the date of this communication. You should not rely upon the information in this communication in making investment decisions. Nothing in this communication constitutes advice or personal recommendation.

No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of any securities, markets or developments referred to in the document.



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