UK Manufacturing Contracts On Covid-19 Disruption
01 Aprile 2020 - 10:26AM
RTTF2
UK manufacturing activity contracted in March due to the
outbreak of the coronavirus, or Covid-19, and the subsequent
mitigation efforts, the final survey data from IHS Markit showed
Wednesday.
The IHS Markit/Chartered Institute of Procurement & Supply
factory Purchasing Managers' Index fell to 47.8 in March from 51.7
in February. The flash estimate was 48.0.
Output fell to the greatest extent since July 2012 following a
similarly severe reduction in intakes of new business. The impact
was also felt in the labor market and through supply chains.
Manufacturers said declines in output and orders resulted from
the disruption caused by the covid-19 outbreak, lower market
confidence and company shutdowns.
Export business fell to the greatest extent since mid-2012 as
there were reports of project delays, cancelation and
transportation issues.
Employment declined at the fastest rate since July 2009.
Further, manufacturers reduced purchasing activity due to falling
output requirement and efforts to protect cash flows.
Moreover, business sentiment fell to a series-record low in
March as manufacturers see further economic disruption and
uncertainty.
Inflationary pressures remained relatively contained, with input
costs and output charges only rising at mild rates.
"With supply chains crumbling around the world, we can only
expect a worsening outlook next month as increasingly necessary
lockdown measures squeeze manufacturing production," Duncan Brock,
group director at the CIPS said.
Only creative and agile thinking, new products and approaches
will see the sector through the turbulence ahead, Brock noted.
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