The UK Markit/CIPS Purchasing Managers’ Index® (PMI®) for July showed another disappointing drop.
With substantial declines in output and new orders, and input costs falling sharply, but selling prices continue to rise, the index posted at 45.4, firmly in contraction territory. Last month posted 48.4.
David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply:
“A perfect storm of wet weather and weak confidence in the UK has combined with global economic drift to engulf the manufacturing sector in July. While the Eurozone has continued to be the major factor, declines in business from Asia have dashed hopes of a quicker recovery.
“Manufacturers are doing everything they can to arrest the decline, working through backlogs, cutting back on purchasing, and passing on costs, but there is little room to manoeuvre.
“A slight increase in employment is the thinnest of silver linings for the sector, along with lower input prices and further growth in the consumer goods industry. However, the sharp decline in production of both investment goods and intermediate goods is an ominous sign.”
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