- Prior 47.2
Output, new orders, and employment conditions all declined in the UK manufacturing sector at the end of last year. And that suggests that overall activity remains weak with a rather uncertain outlook. Of note, business optimism also dipped further to a 12-month low. S&P Global notes that:
“UK manufacturing output contracted at an increased rate
at the end of 2023. The demand backdrop also remains
frosty, with new orders sinking further as conditions
remain tough in both the domestic market and in key
export markets, notably the EU. The downturn has hit
manufacturers’ confidence, which dipped to its lowest level
in a year, and encouraged renewed cost caution with further
cutbacks to stock levels, purchasing and employment.
“With concerns about high interest rates and the cost-of-living crisis hurting demand, the outlook for manufacturers
in the months ahead remains decidedly gloomy.
“The downturn in demand is having some positive effects on
supply chains, however, with suppliers reducing their prices
for raw materials and vendor lead times showing a further
improvement.”