CIPS UK Manufacturing PMI®3 Oct 2022 10:34
September saw the downturn in UK manufacturing output
extend to three months, as companies cutback production
in response to declining new order intakes. There was less
positive news on the price front as well, with rates of inflation
for input costs and output charges both accelerating.
The seasonally adjusted S&P Global / CIPS UK Manufacturing
Purchasing Managers’ Index® (PMI®) posted 48.4 in
September, up from 47.3 in August but below the flash
estimate of 48.5.
Although the rate of contraction in output eased slightly
since August, it nonetheless remained substantial overall.
Contractions were registered across the consumer,
intermediate and investment goods industries. The steepest
decline was at intermediate goods producers, which was also
the only sub-sector to see its rate of contraction accelerate.
Manufacturers linked lower production to a reduction in
new work intakes. The level of new business declined for
the fourth month running, albeit to a slightly weaker extent
than in August. Companies faced tougher conditions in
both domestic and export markets. There were also reports
of expected orders being postponed, or cancelled, due to
factors such as rising uncertainty, inflationary pressure and
the cost-of-living crisis.
September saw new export business contract at the quickest
pace since May 2020, with reports of lower demand from
the US, the EU and China. Manufacturers faced weak global
market conditions, rising uncertainty, high transportation
costs reducing competitiveness and longer lead times
leading to cancelled orders.
Manufacturers maintained a positive outlook overall during
September. Over 49% forecast that their output would be
higher one year from now, as planned investments, new
product launches and hopes for a calmer economic backdrop
are expected to lead to an influx of new contracts. However,
the degree of positive sentiment remained subdued overall,
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