The UK manufacturing sector hit a 39-monh low with rates of contraction in output and new orders among the steepest registered outside of events such as the global financial crisis or COVID-19 pandemic, according to new figures.
The seasonally adjusted S&P Global CIPS UK manufacturing purchasing managers' index stood at 43.0 in August, down from 45.3 in July but above an earlier flash estimate of 42.5.
August saw the #UK manufacturing sector sink into a deeper downturn (#PMI at 43.0; Jul: 45.3), with rates of contraction in output and new orders among the steepest registered outside of the global financial crisis and pandemic. Read more: https://t.co/qMn1MLURm6
— S&P Global PMI™ (@SPGlobalPMI) September 1, 2023
Falling further below the 50.0 no-change mark, it shows the contraction in the UK manufacturing sector worsened last month, reaching its lowest level since May 2020.
Companies mentioned slower market conditions, declining new order intakes and efforts to reduce inventories of finished goods as factors underlying the latest contraction.
"Another substantial fall in manufacturing activity, contracting for the sixth month in a row and the fastest rate since May 2020, showed that these are tough times for manufacturers," said John Glen, chief economist at the Chartered Institute of Procurement & Supply.