Overall performance across the goods-producing sector was supported by solid and faster expansions in output and new orders, with foreign demand also increasing.
The U.K. manufacturing outlook darkened during October, according to the latest IHS Markit PMI survey, as "trade tensions" and "Brexit uncertainty" led to a decline in new orders and employment among the nation's industrial firms.
Production and new orders sub-indices have also experienced a fall since a month ago. At the same time, the rate of input cost inflation softened to its lowest since July 2017 and charges were lowered for the second month in a row.
New export orders have contracted for the fifth month straight since President Donald Trump's decision of tariff hike and trade war with China.
The latest data suggest that the local manufacturing sector has started to feel the pinch of escalating trade tensions between the U.S. and China, and turned pessimistic about the business outlook. The rise in new order flows was the fastest since June. Encouragingly, supplier delivery times improved for the first time in six months in October.
"Aside from the demand-side impact of the SST, there were reports of general underlying market weakness hampering new business growth, which restricted the extent to which firms were passing through higher cost burdens to clients", he said.
Manufacturing accounted for 30% of China's gross domestic product in the first half of this year, while the services sector contributed 54%, according to Caixin calculations based on government data.
Meanwhile, firms registered a strong rise in buying activity amid reports of greater efforts to stockpile.
Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply, said, "On the surface, the construction sector showed growth but there was plenty for businesses to be concerned about underneath". "However, the rate of selling price inflation was mild, in the context of historical survey data", the survey noted. Policy makers hiked rates in August, and said more increases will be necessary in the coming year. The overall level of positivity was at a 20-month low.
It seems that Brexit and global trade uncertainty have really started to bite United Kingdom manufacturing, as new orders domestically and worldwide new business fell throughout October.
PMI fell to a 27-month low of 51.1 down from September's reading of 53.6, with companies blaming lower inflows of new work from overseas, particularly from within the European Union due to Brexit uncertainty but also global trade tensions.
Others focussed more attention on rising global trade tensions and weaker demand from the world autos sector, Markit reported.