November 1st, Gregor Hook | Standard & Poor's global market intelligence director Rob Dobson said: "Britain's manufacturing industry began the final quarter of the year with uncertainty, as speculation about government policies before the budget led to a wait-and-see attitude towards investment and spending, widely reported as causing adverse domestic factors, combined with ongoing export business losses, resulted in a comprehensive contraction in new employment since April. As a result, output growth has almost stalled. The overall PMI has fallen below the neutral level of 50.0, with business optimism only slightly higher than the 9-month low in September, also reflecting the overall sluggish environment." On the price front, there is better news. Input cost inflation has dropped to a 10-month low, one of the most significant easing measures in the 33-year survey history. If demand weakens, this may provide policymakers with some room to support growth. The Purchasing Managers' Index for January is eagerly awaited to see the short-term impact of the budget on the business environment, especially on confidence.