Final data published by S&P Global/CIPS showed that business activity in the UK manufacturing sector declined slightly in September, confirming the preliminary estimate and forecasts of economists, with output and new orders both continued to rise.
UK manufacturing PMI fell to 51.5 points, as expected, from 52.5 points in August. The index remains above 50 points, indicating an expansion of activity in the sector, for the 5th month in a row.
The report also showed that three out of the five PMI sub-components – output, new orders and suppliers' delivery times – were at levels consistent with improved manufacturing operating conditions. Meanwhile, levels of employment and stocks of purchases both declined. Manufacturing production grew again in September, showing a fifth consecutive monthly increase, helped by an increase in domestic new orders. However, data signaled a further decline in incoming new export business, the thirty-second in as many months, caused by subdued market conditions in Europe. Employment in the manufacturing sector declined in September after the sharpest increase since July 2022 in August. Lower staffing reflected cost reduction initiatives and a more cautious approach from companies amid rising uncertainty about the likely future path for demand. The data also showed that business optimism dropped to a 9-month low.