Manufacturing recovery will not be quick_2

11 February 2010

1 October 2009 | Jake Kanter

Activity in the UK manufacturing industry contracted further last month, as growth in production reduced sharply.

According to the latest CIPS/Markit Manufacturing Purchasing Managers' Index (PMI) – in which a figure below 50 represents contraction - total activity in the sector registered 49.5 in September.

This was down from 49.7 recorded the previous month and a further reduction on the 16-month high of 50.8 posted in July.

Growth in output eased from 54.3 in August to reach 50.8 last month, reflecting lower demand for capital investment goods.

New orders continued to rise in September, but at a slower rate than August. The rate of decline in staff levels eased slightly last month but remained in severe contraction.

Average input costs and output charges also continued to fall in September.

CIPS chief executive David Noble said: “The latest data will disappoint those hoping for a quick economic recovery. However, it must be remembered that after hitting an unprecedented low in November last year, we have seen the manufacturing industry make a significant rebound.”

The Markit Eurozone Manufacturing PMI continued to show improvement as contraction eased from 48.2 in August, to reach a 16-month high of 49.3 in September.

 

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