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UK manufacturing slide extends to eight months in a row

UK manufacturing contracted at the start of the final quarter, falling for the 8th month in a row, as October saw output, new orders and employment all decline, latest figures showed.

The seasonally adjusted S&P Global/CIPS UK manufacturing PMI posted 44.8 in October, up from 44.3 in September but below the earlier flash estimate of 45.2.

All five of the sub-components included in the PMI calculation signalled a deterioration in operating conditions during October.

Alongside lower new orders, output and employment, stocks of purchases also declined and suppliers' delivery times improved (traditionally a sign of weak demand).

Rob Dobson, director at S&P Global Market Intelligence, said the manufacturing downturn "remains a weight dragging on an economy already skirting with recession."

"Production volumes contracted for the eighth consecutive month, the longest sequence of continual decline since 2008-09," he noted.

"Risks to the outlook remain skewed to the downside," he added, noting business optimism dipped to a ten-month low and manufacturers' "increased belt-tightening drove cuts to employment, purchasing and inventories."

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