The UK manufacturing sector slipped further into contraction in September, with the PMI finalized at 46.2, down from 47.0 in August and marking a five-month low. Rob Dobson, Director at S&P Global Market Intelligence, called the results “further worrying news” for industry, pointing to weak demand, fading export orders, and a high-cost environment amplified by rising taxes and labor costs.
The report noted that the tough backdrop is eroding business confidence. Firms have now shed jobs for 11 consecutive months, with many cutting back on purchasing and non-essential spending. Sentiment about the year ahead remains subdued.
There were some glimmers of hope. Firms highlighted that lean inventories and potential easing in global trade tensions could lift output in the months ahead. Input costs are also rising at a slower pace, which may give the BoE scope to cut rates later this year.
