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- UK manufacturing PMI fell less than expected in March
UK manufacturing PMI fell less than expected in March
According to the report from IHS Markit/CIPS, the outbreak of coronavirus disease 2019 (COVID-19) and subsequent mitigation efforts across the world led to a substantial contraction of UK manufacturing production during March. Output fell to the greatest extent since July 2012 following a similarly severe reduction in intakes of new business. The impact was also felt in the labour market and through supply chains. Transport delays and shortages of raw materials led to the steepest increase in vendor lead times in the 28-year survey history, further disrupting production.
The seasonally adjusted manufacturing PMI fell to a three-month low of 47.8 in March, down from 51.7 in February and the flash estimate of 48.0. Economists had expected a decrease to 47.0.
The downturns in output and new orders were widespread, with contractions seen across the consumer, intermediate and investment goods sub-industries. Manufacturers reported that disruption resulting from the COVID-19 outbreak, lower market confidence and company shutdowns had all contributed to the drops in production and new business. Business sentiment was also affected, falling to a series-record low.
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