Economic Buzz: UK Manufacturing PMI At 46.2 In October

1 Nov 2022 , 03:57 PM

The UK manufacturing sector started the final quarter of the year on a weak footing. Output contracted for the fourth successive month, as a steep drop in new work received, weak export demand and supply-chain disruption led to a scaling back of both production and employment. The seasonally adjusted S&P Global / CIPS UK Manufacturing Purchasing Managers Index (PMI) fell to a 29-month low of 46.2 in October, down from 48.4 in September but above the earlier flash estimate of 45.8. The PMI has remained below the neutral 50.0 mark for three consecutive months. October saw new order intakes decline at the fastest pace since May 2020. The impact of lower demand was felt across industry. Although the rate of contraction in production volumes eased to a three-month low in October, the consumer, intermediate and investment goods sectors all saw output decline. The deterioration in new order inflows also hurt employment, purchasing activity and manufacturers business optimism in October. Job losses were reported for the first time since December 2020, reflecting redundancies, cost control initiatives and difficulties in both recruiting and retaining staff and specific skill sets. Powered by Commodity Insights