UK factory activity shrinks further in March

By Mucahithan Avcioglu

ISTANBUL (AA) - The UK's manufacturing activity downturn deepened in March, marking the third consecutive month with a decrease in the figure, according to an S&P Global report released on Monday.

The UK's manufacturing purchasing managers' index fell to 44.6 in March from 46.9 in February, its lowest level in 18 months, falling short of the forecast of 47.3.

A PMI reading above 50 indicates growth, while a figure below signals contraction.
Manufacturing production fell in March, with the sharpest downturn in production volumes for nearly one-and-a-half years.

Employment also declined for the six months in a row.

On the price front, input price inflation eased further from January’s nine-month high but remained much higher than the long-run average.

Meanwhile, output price inflation was mostly stable in March.

Director of S&P Global Market Intelligence Rob Dobson stressed that the manufacturers are facing some headwinds and said: "These headwinds include the additional costs imposed on businesses in the Budget, low confidence among businesses and households, and sluggish demand at home and abroad, the latter linked to heightened geopolitical uncertainty resulting from US tariff policies.”

"Worryingly, these headwinds are likely to grow in force as higher National Insurance contributions come into effect in April, coinciding with the anticipated review of US tariff policy on 2nd April, the latter having the potential to further subdue global economic growth and dampen UK trade,” he added.