Manufacturing

Manufacturing slump 'no surprise'

Workers making things
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Today's further fall in the manufacturing PMI is no surprise, reckons Atul Kariya, head of manufacturing & engineering at MHA MacIntyre Hudson

"The lack of clarity surrounding the UK’s exit from the European Union continues to bring uncertainty that is heavily impacting the commitment of firms and their customers to making investments and placing major orders," he said.

“This uncertainty, coupled with the fall in stockpiling that had propped up the index in previous months, is taking its toll on the industry – and you only need to look at the struggling car manufacturing sector for evidence of this.”

Manufacturing PMI: companies 'resorted to job losses'

Duncan Brock, group director at the Chartered Institute of Procurement & Supply, said the the June manufacturing PMI:

The triple whammy of the Brexit-delay fallout, weaker domestic and export demand impacted on new orders, optimism and job creation, and the sector was left gasping for breath. With clients starting to unwind pre-March Brexit stockpiles new orders from domestic and export markets failed to materialise as the global economy also slowed down. Companies resorted to job losses to reduce the slack in production capacity, as employment fell for the third month in a row.

Manufacturing PMI at lowest level in six and a half years

Rob Dobson, director at IHS Markit, said of June's manufacturing PMI:

The downturn in UK manufacturing deepened during June, as the impact of firms unwinding stockpiles built before the original Brexit date continued to reverberate through the sector and exacerbate weak demand. This led to solid decreases in both production and new orders, which sank the headline PMI to its lowest in almost six-and-a-half years.

Manufacturing downturn deepens

Manufacturing worker
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The UK manufacturing PMI has fallen to its lowest level since February 2013.

The June IHS Markit/CIPS UK manufacturing purchasing managers' index (PMI) showed a reading of 48, down from 49.4 in May.

"The UK manufacturing sector continued to feel the reverberations of the unwinding of earlier pre-Brexit stockpiling activity during June," the report said.