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- UK Manufacturing PMI dropped to 49.4 in May, reaching 34-month low - IHS Markit/CIPS
UK Manufacturing PMI dropped to 49.4 in May, reaching 34-month low - IHS Markit/CIPS
According to the report from IHS Markit/CIPS, the UK manufacturing sector showed increased signs of renewed contraction in May.
At 49.4, down sharply from 53.1 in April, the headline seasonally adjusted PMI fell below the neutral 50.0 benchmark for the first time since July 2016.
Manufacturers reported increased difficulties in convincing clients to commit to new contracts during May. This mainly reflected the already high level of inventories following recent stockpiling activity in advance of the original Brexit date. The total volume of new business placed fell for the first time in seven months. The rate of contraction was the greatest since July 2016 and one of the fastest seen over the past six-and-a-half years.
New order inflows deteriorated from both domestic and overseas sources. New export business fell for the second month running and at the quickest pace in over four-and-a half years.
The renewed downturn in new orders weighed on both output and employment during May. The trend in production was the weakest during the past 34 months, as an increase at large companies was mostly offset by contractions at small and medium sized firms.
Output charges inflation rose to a three-month high in May, largely reflecting a marked acceleration for consumer goods. Purchase price inflation edged lower.
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