The S&P Global UK Manufacturing PMI stood at 47.0 in January, marking a slight improvement from December’s 46.2 but falling short of the earlier flash estimate of 47.3.

For the 18th consecutive month, the PMI has reflected a downturn in operating conditions.

Four out of the five PMI sub-components—output, new orders, employment, and stocks of purchases—continued to show trends indicative of an overall contraction.

Input costs and selling prices have both increased.

Rob Dobson, Director at S&P Global Market Intelligence, commented, “The downturn in UK manufacturing persisted at the commencement of 2024, with reduced output, new orders, and employment in January. The contraction was widespread, with declines in all three variables experienced across the consumer, intermediate, and investment goods sub-industries. The sustained weakness is prompting manufacturers to adopt an increasingly cost-conscious approach, leading to cutbacks in purchasing and stock holdings as companies seek to enhance efficiencies, safeguard cash flow, and protect fragile margins.”

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