Brexit stockpiling frenzy could cause sharp decline later
British factories ramped up activity at a record pace in March to minimise any disruption to supply lines
London — Factories in Britain stockpiled for Brexit at an explosive rate in March, unlike anything seen before in a major rich economy, pushing manufacturing growth to an unexpected 13-month high, a survey showed on Monday. The IHS Markit/CIPS UK Manufacturing purchasing managers’ index (PMI) rose to 55.1 from 52.1 in February, confounding all forecasts in a Reuters poll that had pointed to a reading of 51.0. The headline figure far exceeded readings from the euro zone, where a global slowdown has left factories in a slump. But British manufacturers are increasingly worried that their surge of activity, fuelled by preparations to exit the EU, will make way for a sharp decline later, survey compiler IHS Markit said. “Encouraging as today’s figures may appear, the true picture of UK manufacturing continues to be obscured by stockpiling, driven by the ongoing Brexit uncertainty, and this pattern looks unlikely to change until manufacturers see some whiff of white smoke above Westminste...
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