UK PMI Manufacturing was finalized at 47.5 in December, down from November’s 48.9. It’s the second weakest level for almost seven-and-a-half years (the PMI stood at 47.4 in August 2019). Also, the index has posted below the neutral mark of 50.0 in each of the past eight months.
Rob Dobson, Director at IHS Markit, which compiles the survey:
“The UK manufacturing sector took a turn for the worse at the end of 2019. Output fell at the quickest pace in seven-and-a-half years as new order inflows decreased and Brexit safety stocks were reduced. With demand weak and confidence remaining subdued, input purchasing was pared back sharply and jobs cut for the ninth successive month.
“The downturn is still being hardest felt at companies reliant on investment and business-to-business spending. The steepest reduction in output was at investment goods producers, as continued uncertainty meant new orders and new export business suffered the steepest contractions in over a decade. Intermediate goods producers also experienced marked drops in output and new work received. There was a pocket of growth, however, as consumer goods production edged higher. On this basis, it looks like UK manufacturing and the broader economy may both start the new decade as they began the last, too reliant on consumer spending and still waiting for a sustained improvement in investment levels.”
