UK PMI Manufacturing was finalized at 47.9 in March, down from February’s 7-month of 49.3. The index has stayed below the neutral 50 mark for eight successive months.
Rob Dobson, Director at S&P Global Market Intelligence, highlighted that UK manufacturing production “fell back into contraction” at the end of the first quarter due to subdued market conditions. While total new orders saw a slight increase after a nine-month contraction, order book levels remain low. New export order declines continue to impact demand, despite a modest recovery in the domestic market.
However, Dobson pointed to positive developments in pricing and supply during March. Input price inflation reached its lowest level since June 2020, and although selling prices decelerated, they remained higher than input costs, offering some relief for manufacturers’ margins. Supply chains continued to recover, with March witnessing the greatest improvement in average vendor lead times in the survey’s 31-year history. Dobson noted that this development “should hopefully filter through to further cost reductions and lessen the disruption to production workflows in the coming months.”
