UK manufacturing sector slumps at fastest rate in 8 years
An article published by Yahoo Finance reveals that UK manufacturing output and new orders have declined at the fastest rate in eight years due to the coronavirus pandemic, according to a survey of business leaders.
Data provider IHS Markit said on Wednesday its closely watched purchasing managers’ index (PMI) for the manufacturing sector fell to 47.8 in March.
The index is measured on a scale of 0 to 100, with anything above 50 signalling growth and anything below signalling contraction. It slipped into contraction from a reading of 51.7 in February.
“The latest survey numbers underscore how the global outbreak of COVID-19 is causing huge disruptions to production, demand and supply chains at UK manufacturers,” said Rob Dobson, Director at IHS Markit.
Dobson said factories were facing shortages of part as supply chains are disrupted. New orders are also diving as the global economy freezes over.
“Output and new orders fell at the fastest rates since mid-2012, while supplier delivery times lengthened to the greatest extent in the 28-year survey history as shortages grew more widespread,” he said. “The resulting job losses took the rate of decline in employment to its highest since July 2009.”
Dobson said all areas of UK manufacturing saw slumping demand in March, with the exception of food and pharmaceuticals.
