The Brexit-driven surge in British manufacturing is starting to stutter

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• IHS Markit’s PMI survey for the British manufacturing sector for December comes in at 56.3 — a solid, above trend figure.
• However, the reading is significantly down from November’s reading, suggesting that the sector may be starting to stutter.
• Manufacturing has been a rare case of an economic success story in the UK since the vote to leave the EU in June 2016, thanks largely to the weakness of the pound since the vote.

LONDON — Britain’s manufacturing slowed down into the end of 2017, but remained solid, according to the latest PMI survey released by IHS Markit on Tuesday.

December’s reading for the sector came in at 56.3, down from 58.2 in November — a reading that was the highest in more than four years.

“The UK manufacturing sector ended 2017 on a positive note,” a statement from IHS Markit said.

“Although December saw rates of expansion in output, new orders and employment slow from November’s highs, growth in all three remained solid and well above long-run trends.”

The purchasing managers index (PMI) figures from IHS Markit are given as a number between 0 and 100.

Anything above 50 signals growth, while anything below means a contraction in activity — so the higher the number is, the better things look for the UK.

Here’s the chart:

IHS Markit

While a slowdown is evident, IHS Markit’s survey was largely positive, with Rob Dobson, a director at the firm noting that the sector “ended 2017 on a positive footing.”

“Although growth of output and new orders moderated during December, rates of expansion remained comfortably above long-term trend rates. The sector has therefore broadly maintained its solid boost to broader economic expansion in the fourth quarter. The outlook is also reasonably bright, with over 50% of companies expecting production to be higher one year from now.”

Manufacturing has been a rare case of an economic success story in the UK since the vote to leave the EU in June 2016, thanks largely to the weakness of the pound since the vote.

The vote has made British goods, broadly speaking, cheaper for overseas buyers, helping to increase the amount bought, and boosting manufacturers businesses.