UK manufacturers cut jobs at fastest rate since 2012: PMI

The British manufacturing sector was hard hit due to concerns about disruption to supply chains after the UK’s decision to leave the European Union. (AFP)
Updated 02 December 2019

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

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.


First tanker to load crude at Libya’s Hariga port since January

Updated 23 September 2020

First tanker to load crude at Libya’s Hariga port since January

  • The Delta Hellas tanker will enter Libya’s Hariga port on Wednesday and load 1 million barrels of oil from the port’s storage

BENGHAZI/LONDON: An oil tanker is expected to load crude at Libya’s Marsa el-Hariga terminal this week, the first since a blockade by eastern forces in January slashed the OPEC member’s oil production to a trickle.
The Delta Hellas tanker will enter Libya’s Hariga port on Wednesday and load 1 million barrels of oil from the port’s storage, the Arabian Gulf Oil Co. which operates the port said in a statement.
Eastern Libyan commander Khalifa Haftar said last week his forces would lift their eight-month blockade of oil exports, which depressed the OPEC member’s production down to around 100,000 barrel per day (bpd).
Trading arm of China’s Sinopec , Unipec- which prior to the blockade was one of the main lifters of Mesla and Sarir crude grades from the terminal- booked the tanker, two trading sources said.
Unipec also booked the Marlin Shikoku tanker, which according to Refinitiv Eikon shipping data is expected to arrive at Hariga on Thursday.
This comes as the National Oil Corporation (NOC) seeks to gradually boost production, with output expected to rise to around 260,000 bpd next week.
Before the blockade, Libya produced around 1.2 million bpd, or more than 1% of global production.
NOC, which said it would only resume at ports and oilfields that are free of military presence, has so far announced oil export resumption from the Hariga, Brega and Zueitina terminals.