UK manufacturing deteriorates further in November
The outlook for the UK manufacturing economy will remain gloomy, according to November’s Purchasing Managers’ Index produced by the Chartered Institute of Purchasing and Supply (CIPS) and Reuters.
The headline index fell from 50.6 in October to 50 – its lowest level for four months. The CIPS attributed the decline to the slowing global economy and cost-cutting measures undertaken within firms. The Output Index fell from 53.0 in October to 50.9 in November. Employment levels continued to fall but showed slight improvement – The Employment Index recorded 47.7 in November compared to 47.0 in October.
On a more positive note, the survey reported stronger growth in demand with the New Orders Index recording 52.1, up from 51.3 in October.
CIPS director Roy Ayliffe noted that firms had generally enjoyed lower raw material prices over the month and had managed to boost output prices while stemming the tide of job losses. He said that, overall, activity in the sector was likely to remain inconsistent for some time – manufacturers have laid off thousands of employees in the past year to weather the impact of the slowing global economy.
