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Monday 02 Dec 2019 , 1:11 pm

UK manufacturers cut jobs at fastest rate since 2012 – PMI

The IHS Markit/CIPS manufacturing Purchasing Managers’ Index (PMI) sank to 48.9 in November from 49.6 in October, a slightly smaller decline than an initial flash estimate of 48.3.
By SIN Bureau
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British manufacturers cut jobs last month at the fastest rate since 2012, a survey showed on Monday, as pressures from Brexit and a global trade slowdown caused the sector’s longest decline since the financial crisis.

The IHS Markit/CIPS manufacturing Purchasing Managers’ Index (PMI) sank to 48.9 in November from 49.6 in October, a slightly smaller decline than an initial flash estimate of 48.3.

But the PMI stuck below the 50 level that divides growth from contraction for a seventh consecutive month, the longest such run since 2009, as the country headed for an early election on Dec. 12 intended to end a parliamentary logjam over Brexit.

Britain’s economy has slowed since the referendum decision in June 2016 to leave the European Union, with manufacturing especially hard hit due to concerns about disruption to supply chains, on top of pressures from the U.S.-China trade war.

The PMI’s employment component sank to 46.8 from 47.1, representing the biggest loss of jobs since 2012, though less of a fall than in the flash estimate.

Manufacturing makes up around 10% of Britain’s economy. In the third quarter output in the sector fell by 1.4% from a year earlier, while growth in the economy as a whole slowed to 1.0%, its weakest since 2010.

Trade association Make UK cut its forecast for manufacturing growth to 0.1% for 2019 and 0.3% for 2020, down from a previous forecast of 0.6%.

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Meeta develops credible content about various markets based on deep research, opinions from experts and inputs from industry leaders. As the managing editor at Smart Market News, she assures that every piece of news and article adds to the knowledge of decision makers. An avid bike rider, Meeta, is a postgraduate from Indian Institute of Journalism and New Media (IIJNM) Bangalore, where her specialization was Business Journalism. She carries experience from mainstream print media including The Times Group and Sakal Media Group.

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