The Contract Manufacturing Index (CMI) rose by 109% during January 2020.
After reaching an all-time low in the fourth quarter of 2019 and suffering an overwhelmingly difficult year overall, January 2020's CMI reported a sharp rise in purchasing activity ahead of the Brexit deadline. Having recorded an average value of 66 from October to December 2019, the CMI then jumped to 138 in January 2020. This result mirrors a similar uptake to that of the Purchasing Managers' Index (PMI).
Although stockpiling contributed significantly to outsourcing levels ahead of past Brexit deadlines, we are sceptical that this is the case in this instance. Instead, we expect that 2019's stagnance is beginning to dissipate as more and more organisations shed restrictions previously placed upon their spending. This is a good omen for the health of the UK's industry and we eagerly wait to see whether the rest of the quarter follows suit.