Friday 23rd October 2020 - 09:45 (BST)
Figures released by The Chartered Institute of Purchasing & Supply and Markit Economics have shown UK and EU manufacturing sector performance remained strong over October. A preliminary reading of 53.3 for the UK and 54.4 for the EU easily outperformed analysts expectations of just 53.1 for both markets.
It was also the fifth consecutive month of growth within the sector, despite the continent continuing to grapple with rising coronavirus infection rates and the direct impact on supply chains. Consumer demand remained strong over the same period, largely driven by an increase in export orders and retail sales.
The news follows a recent letter sent by The European Automobile Manufacturers' Association (EAMA) to the blocs chief Brexit negotiator, Michel Barnier, requesting a softening in stance regarding rules on tariff-free vehicles traded between the UK and EU. ACEA's boss Eric Mark Huitema, who represents 16 of the world's biggest carmakers in Brussels, expressed concern on how much content finished cars required in order to be classified in this bracket.
The UK and EU agreed to resume Brexit negotiations earlier in the week following a tense stand-off over fishing rights in British waters, fair competition rules for business and mechanisms for resolving future disputes. This led to the biggest single-day GBP rally since March, however there has yet to be any stabilisation above €1.10 versus the euro and $1.30 versus the US dollar.
