UK manufacturing sector still troubled

CIPS 2 July 2012

Sector remains in contraction territory

The UK Markit/CIPS Purchasing Managers’ Index® (PMI®) shows input prices fall at fastest pace in three years

Posting at 48.6, up from May's three-year low of 45.9, output volumes recover some ground, but new order intakes fall further. Input prices fall at fastest pace since May 2009.

David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply:

“The manufacturing sector is playing catch up after the dramatic falls in activity reflected in last month’s PMI.  The effects of the Eurozone crisis and global economic slowdown are making it a tricky time to build on exports, but there were a couple of brighter spots which helped ease the decline.

“The significant reduction of input prices was a silver lining for the sector, as businesses tried to claw back some of the margins lost in previous months.  Businesses have also responded to weak levels of new orders by working through backlogs of work, leading to an overall growth in output. 

“The concern for the near future is the spare capacity reported by manufacturers, which could lead to job losses in the coming months unless there is a pick-up in orders.  As ever, it remains a long and difficult road ahead.”

For press enquiries, call the Press office on 01780 756777 or email: The PMI data is available to purchase.

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