U.K. manufacturing output likely to have bounced 0.7 pct in November, says Societe Generale

The U.K. manufacturing output is likely to have recovered in November. The recent business surveys have continually surprised with the strength of the output and orders balances, noted Societe Generale in a research report. For instance, the PMI output index for September rose to 60.2, the highest in two and a half years.

But the chart shows that the actual output level is the same as it was two and half years ago. It appears as though the level of the business surveys is telling more about the high amplitude of the volatility of output rather than the level of output at the moment.

“Against this backdrop we predict that manufacturing output will bounce by 0.7 percent mom in November after a fall of 0.9 percent mom in October”, added Societe Generale.

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