UK manufacturing PMI dips to 13-month low in March

By Tuba Sahin

ANKARA (AA) – The UK Purchasing Managers’ Index (PMI) for the manufacturing sector tumbled to a 13-month low as business optimism dipped in March.

The PMI fell to 55.2 in March, from a three-month high of 58.0 in February, due to “ongoing supply shortages, greater caution among clients, escalating inflationary pressures and geopolitical tensions,” according to a report by global data company IHS Markit released on Friday.

Output and new orders saw weaker growth, stocks of purchases and employment registered slower upturns and average supplier lead times lengthened in March, the report said.

“March saw a marked growth slowdown in the UK manufacturing sector, with rates of expansion for production and new orders both easing and new export business suffering back-to-back declines,” said Rob Dobson, director at S&P Global.

Output of consumer goods weakened markedly in the month, he said.

“Manufacturers are being hit by several headwinds simultaneously, as supply shortages, greater caution among clients, escalating inflationary pressures, ongoing Brexit factors and rising geopolitical tensions all hamper the upturn,” Dobson said, adding that all of this pushed business optimism down to a 14-month low.