Downturn in UK manufacturing sector intensifies

by | Aug 1, 2023

(Sharecast News) – The downturn in the UK manufacturing sector intensified last month, according to a survey out on Tuesday.
The S&P Global/CIPS manufacturing purchasing managers’ index fell to 45.3 in July from 46.5 in June, remaining below the 50.0 mark that separates contraction from expansion.

This marked the lowest reading so far this year and joint-weakest since May 2020. Still, it was a touch higher than consensus and the flash estimate of 45.0.

Dr. John Glen, chief economist at the Chartered Institute of Procurement & Supply, said: “The outlook for the manufacturing sector darkened again in July with a sudden fall in output and one of the worst since the pandemic. Manufacturers have registered a reduction in activity in all-bar one month during the past year as new work and employment levels shrank back.

“The lowest orders since last November from overseas customers was particularly surprising, just when signs of improvements in global marketplace activity had started to appear, new work from the Eurozone was subdued just as domestic work dried up.

“Although costs for some materials were still being driven higher by inflationary rises, taking a huge bite out of business cashflow, the cost of many more inputs showed sharp drops on the back of weak demand and more availability as delivery times improved for the sixth consecutive month. This opportunity for price reductions for end consumers may take a few months to filter through as firms ensure a more stable footing for their operations for the second half of 2023.

“Overall, it seems that recovery has stalled. Concerns about further interest rate rises making borrowing more expensive and customers reluctant to buy had the sector running on empty for another month but more than half of survey respondents kept their chins up and remained hopeful about the next 12 months.”

Related articles

UK manufacturing sector sees output slip – CBI

UK manufacturing sector sees output slip – CBI

(Sharecast News) - The UK's manufacturing sector continued to struggle in September, a survey showed on Friday, as higher costs weighed heavily. According to the latest CBI Industrial Trends Survey, total orders fell to a five-month low of -18 in September, from -15 a...

UK private sector output unexpectedly falls – PMI

UK private sector output unexpectedly falls – PMI

(Sharecast News) - UK output unexpectedly fell in September, a closely-watched survey showed on Friday, dragged lower by a weaker service sector. The latest flash S&P Global/CIPS UK PMI Composite Output Index came in at 46.8, down on August's 48.6 and a 32-month low....

UK retail sales rise 0.4% in August after wet July

UK retail sales rise 0.4% in August after wet July

(Sharecast News) - UK retail sales rebounded in August from the rain affected prior month, rising 0.4% on the back of strong food and clothing purchases by consumers, according to official data published on Friday. The rises in food and clothing were partially offset...

Latest Articles

US open: Stocks open flat as bond yields continue to rise

US open: Stocks open flat as bond yields continue to rise

(Sharecast News) - US stocks were swinging between gains and losses early on with little newsflow to drive the direction either way, with the S&P 500 taking a breather after hitting a three-month low last week. By 1000 in New York, the Dow Jones Industrial Average was...

UP Global Sourcing opens new Paris showroom

UP Global Sourcing opens new Paris showroom

(Sharecast News) - UP Global Sourcing announced the opening of a new showroom in Paris on Monday as part of its drive into the continental European market. The London-listed company, which trades as Ultimate Products and oversees a brand portfolio including Salter and...

Japan’s long-term value is getting unlocked 

Japan’s long-term value is getting unlocked 

Written by Junichi Takayama, Japan Equity Investment Director, Nikko Asset Management  Japan has experienced quite a year so far. One of the highlights occurred in April, with a visit by Warren Buffett of Berkshire Hathaway. The timing of this visit, ahead of Japan’s...

Join our mailing list

Subscribe to our mailing list to receive regular updates!

No Fields Found.
x