1st Oct 2024 10:02
(Alliance News) - The UK manufacturing sector experienced a "solid expansion" in September, data from S&P Global showed on Tuesday.
The seasonally adjusted S&P Global UK manufacturing purchasing managers' index posted 51.5 points in September, unchanged from the earlier flash estimate.
This was down from its 26-month high of 52.5 in August, but was nevertheless above the neutral 50 mark for the fifth month running.
As S&P Global Market Intelligence Director Rob Dobson put it: "The UK manufacturing sector is still expanding at a solid, albeit slightly slower, pace."
Manufacturing production rose for the fifth consecutive month, S&P said, mainly driven by stronger rises in output and new business in the consumer and intermediate goods sectors.
"Three out of the five PMI sub-components – output, new orders and suppliers' delivery times – were at levels consistent with improved manufacturing operating conditions," S&P Global said, noting however that employment levels and purchase stocks both declined as manufactures reduced spending to try and offset higher input costs.
Incoming new export business decreased for the 32nd consecutive month, with subdued market conditions in Europe and lower demand from US clients weighing on overseas demand.
Manufacturing employment also declined in September.
Looking ahead, "manufacturers have become more nervous about the outlook," Dobson commented, "suggesting that the current spell of impressive growth is fading, with business optimism about the year-ahead slumping to a nine-month low.
"The extent of the drop in confidence was striking, beaten only by that seen in March 2020...Uncertainty about the direction of government policy ahead of the coming Autumn Budget was a clear cause of the loss of confidence, especially given recent gloomy messaging, though firms are also worried about wider global geopolitical issues and economic growth risks."
The manufacturing PMI is compiled by S&P Global from responses to a survey sent to a panel of 650 manufacturers, with data collected September 12 to 25.
By Emma Curzon, Alliance News reporter
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