LONDON (Reuters) – British manufacturing activity slowed sharply in September, but at a slower pace than the previous month, when it recorded its fastest contraction in more than three years, final survey results show monthly report from S&P Global/CIPS UK published on Monday.
The final purchasing managers’ index (PMI) stood at 44.3 in September, compared to 43.0 in August which was then the lowest figure since May 2020. It is above the first estimate for September, announced at 44.2, but below the 50 mark which separates growth and contraction in activity.
The end of the third quarter was marked by the continued slowdown among British producers. Production, new orders and employment were all further reduced, amid fewer new orders from the domestic and international markets, S&P Global said.
The most recent official data shows UK manufacturing output fell 0.8% in July, although volumes are 3.0% higher than a year ago.
“Optimism was linked to a hoped-for market recovery, planned growth initiatives and a more stable inflationary environment,” S&P wrote.
The drop in demand from abroad has been widespread, ranging from customers in continental Europe to the United States, China and Brazil, a reflection of a sluggish global economy.
Concerning prices, for the first time in four months, producers increased their prices in order to restore their reduced margins.
(Reporting David Milliken; French version Claude Chendjou, editing by Kate Entringer)
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