THE slump in UK manufacturing continues, increasing the risks of the economy falling into recession.
British businesses are reluctant to invest and foreign ones are routing supply chains away from the UK due to fears about Brexit. The closely watched IHS Markit/CIPS Purchasing Managers’ Index stood at 48.3 for September. That’s better than the 47.4 recorded for August, but still poor. Any figure below 50 signals contraction.
Rob Dobson at IHS Markit said: “The UK manufacturing downturn continued in September, adding to signs that the sector may be sliding into recession. Output, new orders and employment all fell further as rising political, trade and economic uncertainties exacerbated concerns about Brexit.”
Companies are desperate to cut costs, leading to job cuts across the sector.
Dobson added: “These headwinds all ensure that manufacturing will likely remain a drag on UK economic growth during the months ahead.”
