Get 14 Days Free
(Alliance News) – The downturn in the UK’s manufacturing sector worsened in December, survey results showed on Tuesday, as new business plummeted.
The seasonally adjusted S&P Global/CIPS UK manufacturing purchasing managers’ index fell to 45.3 points in December from 46.5 in November. The reading was a 31-month low, but came in above the previous flash estimate of 44.7.
With readings remaining below the 50-point no-change mark, December was the fifth consecutive month of contraction in UK manufacturing activity.
Output saw one of its steepest falls in the past 14 years, as new orders weakened and supply chain issues continued to plague the sector.
The decline in new business was “worryingly steep”, according to Rob Dobson, director at S&P Global Market Intelligence.
“Clients are increasingly downbeat and reluctant to commit to new contracts, not just in the UK but also in key markets like the US, China and the EU. The weakness in the latter is still being exacerbated by the constraints of Brexit, as higher costs, administrative burdens and shipping delays encourage increasing numbers of clients to shun trade with the UK,” he said.
The downturn in the sector was seen in the labour market as well, with a third consecutive month of job cuts, at the fastest pace since October 2020.
On a more positive note, inflationary pressures continued to slow for input prices and factory selling prices. However, this was mostly down to weakened demand, Dobson noted.
“It is unlikely to provide much real respite for manufacturers and their operating margins as they head into what looks like being a difficult 2023,” he warned.
The PMI is compiled from responses to surveys sent to purchasing managers’ at around 650 manufacturers in the UK, with data collected between December 6 and 20.
By Elizabeth Winter, Alliance News senior markets reporter
Comments and questions to [email protected]
Copyright 2022 Alliance News Ltd. All Rights Reserved.
(Alliance News) – Covid-19 infections in the UK have jumped to their highest level since the …
(Alliance News) – Ireland’s finance minister Michael McGrath has said that the rate of inflatio…
(Alliance News) – World food prices fell for a ninth month in a row in December but hit their …
(Alliance News) – UK Prime Minister Rishi Sunak on Friday urged public-sector unions to hold …
(Alliance News) – Eurozone retail trade rose in November from October, in line with improved …
Mining companies are operating in a challenging environment but could now be the time to top up o…
THE WEEK: Morningstar columnist Rodney Hobson provides two pieces of advice to George Osborne, an…
Businesses that have competitive advantages within their industry are good candidates for dividen…
Morningstar reveals the top 10 best performers over the last five years
Morningstar OBSR reveals the top funds for investors seeking exposure to European equities
Analysts are calling peak inflation as major strikes dominate in the first week of the year
Next week earnings season in the US kicks off, while in the UK, Tesco, Sainsbury’s and M&S ar…
Very few of the trusts rated by Morningstar made positive share price returns last year, but inve…
Shell expects an impact of around $2 billion from the UK and EU windfall taxes in the final quart…
Morningstar Investment Management valuation models suggest that the 60/40 portfolio stands to del…
Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.
About Us
Connect With Us
Get Help
Terms of Use Privacy Policy Modern Slavery Statement Cookie Settings
The Morningstar Star Rating for Stocks is assigned based on an analyst’s estimate of a stocks fair value. It is projection/opinion and not a statement of fact. Morningstar assigns star ratings based on an analyst’s estimate of a stock’s fair value. Four components drive the Star Rating: (1) our assessment of the firm’s economic moat, (2) our estimate of the stock’s fair value, (3) our uncertainty around that fair value estimate and (4) the current market price. This process culminates in a single-point star rating that is updated daily. A 5-star represents a belief that the stock is a good value at its current price; a 1-star stock isn’t. If our base-case assumptions are true the market price will converge on our fair value estimate over time, generally within three years. Investments in securities are subject to market and other risks. Past performance of a security may or may not be sustained in future and is no indication of future performance. For detail information about the Morningstar Star Rating for Stocks, please visit here
Quantitative Fair Value Estimate represents Morningstar’s estimate of the per share dollar amount that a company’s equity is worth today. The Quantitative Fair Value Estimate is based on a statistical model derived from the Fair Value Estimate Morningstar’s equity analysts assign to companies which includes a financial forecast of the company. The Quantitative Fair Value Estimate is calculated daily. It is a projection/opinion and not a statement of fact. Investments in securities are subject to market and other risks. Past performance of a security may or may not be sustained in future and is no indication of future performance. For detail information about the Quantiative Fair Value Estimate, please visit here