2022.12.0112:01:00UTC+00UK Manufacturing Activity Shrinks Further In November

The UK manufacturing activity shrank again in November reflecting lower output, weaker demand and reduced employment, final data from S&P Global showed on Thursday.

The Chartered Institute of Procurement & Supply factory Purchasing Managers' Index edged up to 46.5 in November from 46.2 in October.

The PMI remained below the neutral 50.0 mark for the fourth straight month and posted one of its lowest levels during the past 14 years.

Manufacturers cited reduced inflows of work and supply chain disruptions as reasons for the fall in production. The rate of contraction was slightly sharper than in October.

The total intake of new work decreased in November as manufacturers experienced weaker demand in both domestic and overseas markets.

The deteriorating outlook for output and new orders reined in manufacturers' optimism in November. Confidence dipped to its lowest since April 2020 amid reports of recession fears, weak consumer spending and subdued client confidence.

Employment decreased for the second month in a row, with the rate of job cutting the steepest in two years.

On the price front, the survey revealed that input price inflation remained high despite easing to its second-weakest since the start of 2021. Part of the increase in costs was passed on to clients through higher selling prices.