Private manufacturing sector activity in the United Kingdom experienced difficulties in February with a drop in production and an acceleration in job cuts, shows the S&P Global/CIPS purchasing managers survey published on Friday.
The final PMI index for the sector came out last month at 47.5, after 47.0 in January.
A first estimate put it at 47.1 while the threshold of 50 separates contraction and growth in activity. It has been below this threshold since August 2022.
The production indicator observed in the survey, although improving in February, recorded a 12th consecutive month of slowdown.
The weakness of Britain’s manufacturing sector – also seen in other major economies in Europe, notably Germany – contrasts with the much larger services sector, which has shown signs of recovery since Britain was entered into recession at the end of last year.
The manufacturing PMI employment index fell to its lowest level since June 2020. Excluding the COVID-19 pandemic, this is the worst result since June 2009, when the world was in the grip of a financial crisis.
Input costs and selling prices rose slightly in February, with the latter index hitting a five-month high – which could worry some Bank of England (BoE) officials who are closely monitoring inflationary pressures.
(Writing by Andy Bruce; French version Claude Chendjou, edited by Kate Entringer)