UK reported record declines in manufacturing and service sector output - IHS Markit / CIPS

According to the flash report from IHS Markit / CIPS, widespread business shutdowns at home and abroad in response to the coronavirus disease 2019 (COVID-19) pandemic unsurprisingly resulted in a rapid reduction in UK private sector output during April.

The latest IHS Markit/ CIPS Flash UK Composite PMI was compiled between 7-21 April 2020 and the response rate from members of the survey panel was not affected by shutdowns in place due to the COVID-19 outbreak.

At 12.9 in April, down from 36.0 in March, the seasonally adjusted UK Composite Output Index - which is based on approximately 85% of usual monthly replies - indicated that the combined monthly decline in manufacturing and services activity exceeded the downturn seen at the height of the global financial crisis by a wide margin. Prior to March, the survey-record low was 38.1 in November 2008.

Around 81% of UK service providers and 75% of manufacturing companies reported a fall in business activity during April, which was overwhelming attributed to the COVID-19 pandemic. The small minority of manufacturers reporting output growth were mostly involved in medical supply chains or producers of food & drink.

Flash UK Manufacturing PMI

At 32.9 in April, down from 47.8 in March, the seasonally adjusted UK Manufacturing PMI - a composite single-figure indicator of manufacturing performance - was the lowest since this survey began in January 1992. The Manufacturing PMI is a weighted average of five indices, with the production, new orders and employment components all exerting severely negative influences in April.

UK Services PMI

The seasonally adjusted UK Services PMI Business Activity Index plummeted to 12.3 in April, from 34.5 in March, to signal by far the sharpest reduction in service sector activity since the survey began in July 1996.