Financial News: UK Manufacturing Downturn Deepens In September

UK Manufacturing Downturn Deepens In September

10/01/2025 - 10:03:00 (RTTNews)

(RTTNews) - The UK manufacturing sector contracted at the steepest pace in five months in September amid weak demand in both domestic and foreign markets, survey results from S&P Global showed on Wednesday.

The factory Purchasing Managers' Index fell to a five-month low of 46.2 in September from 47.0 in August. The flash estimate was also 46.2. A reading below 50.0 indicates contraction.

Output fell for the eleventh successive month and at the fastest pace in six months, linked to weaker intakes of new business. New orders fell to one of the greatest extents during the past two years.

The weak market conditions in September were attributed to subdued client confidence, US tariff uncertainty, and the consequences of a high-cost backdrop. Apart from that, automotive supply chains were being disrupted following production shutdowns at Jaguar Land Rover.

Consequently, firms continued to cut workforce numbers in September, and solid reductions were implemented across the consumer, intermediate, and investment goods industries. British companies also scaled back their input buying and stocks of purchases.

On the price front, both input and output price inflation eased to 9-month lows, with the former moderated across the consumer, intermediate, and investment goods categories.

Looking ahead, the optimism about the year-ahead outlook among manufacturers remained relatively subdued overall amid concerns about lacklustre client confidence, government policy, and ongoing global trade uncertainties.

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