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The UK manufacturing sector stayed in decline last month, as companies scaled back production on lower demand, data on Monday showed.
The latest S&P Global/Chartered Institute of Procurement & Supply UK manufacturing purchasing managers’ index rose to 44.3 points in September, from August’s tally of 43.0 in August.
The latest reading remained below the 50-point no-change mark, signalling the sector is still in decline.
‘Output, new orders and employment were all cut back further, amid weaker intakes of new work from both domestic and overseas clients,’ S&P Global said.
‘Demand was impacted negatively by ongoing market uncertainty, the cost-of-living crisis and weak conditions in overseas markets.’
Hurting the export market was ‘client uncertainty and the subdued global economic situation’. Demand from economic powerhouses in Europe, the US and mainland China all ebbed.
Promisingly, the rate of decrease in overseas demand slowed in September.
S&P Global added: ‘Weaker demand for raw materials led to a further decrease in input costs during September. The rate of decline remained close to August’s 91-month record. There were a wide range of inputs reported as down in price, including energy and metals. Average selling prices, in contrast, rose for the first time in four months.’
The outlook for manufacturing is optimistic, according to firms, though positivity slipped in September.
The survey features a panel of 650 firms, with responses collected in the second half of last month.
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