UK Manufacturing PMI September 2020 Update
UK Manufacturing PMI September 2020 Update
In September the UK manufacturing sector continued its recovery from the coronavirus downturn. Output and new orders increased as new work intakes improved from both domestic and overseas markets according to the latest seasonally adjusted IHS Markit/CIPS Purchasing Managers Index PMI.
Output increased for the fourth consecutive month. Large manufacturers saw the fastest growth and small firms the slowest.
New business rose for the third month in a row reflecting a combination of improving customer demand, rising export orders, signs of recovery in the retail sector and the reopening of schools.
Exports grew faster from the UK manufacturing sector in September. New export business rose for the second month with the rate of expansion reaching a 21-month high. The increase was linked to stronger demand from Europe Asia and North America.
Employment continued to fall for the eighth consecutive month although the rate of reduction eased to its lowest since February. Some firms implemented redundancy programmes.
Manufacturers are maintaining a positive outlook for the year ahead with 60% expecting output to be higher 12 months from now. The degree of confidence was close to July’s 28-month high.