UK manufacturing PMI hits seven-year low in August

Monday, 02. September 2019 10:30

The manufacturing PMI in the United Kingdom was at an 85-month low in August as it hit 47.4, IHS Markit said on Monday. The index's previous reading was 48.

New orders fell at the fastest pace in seven years and output volumes contracted as a result. Markit said Brexit uncertainty contributed most to the drop as business confidence dropped to a series-record low. Manufacturing employment also dropped close to the fastest levels in the past six and a half years.

Rob Dobson, director at IHS Markit, stated: "Based on its historical relationship against official ONS data, the latest PMI Output Index is consistent with a quarterly pace of contraction close to 2%. The outlook also weakened as the multiple headwinds buffeting the sector saw business optimism slump to a series-record low." Dobson added: "Demand from domestic and export markets both weakened in August, with new export business suffering the sharpest fall in seven years. The global economic slowdown was the main factor weighing on new work received from Europe, the USA and Asia. There was also a further impact from some EU-based clients routing supply chains away from the UK due to Brexit."

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