From Morningstar: 2024-12-02 06:23:31

The UK manufacturing sector saw a sharper decline than expected in November, with new business falling at the steepest rate since February. This led to a nine-month low in the S&P Global UK manufacturing purchasing managers’ index at 48.0 points. The decline was attributed to delayed investment decisions after the UK Budget.

Both manufacturers and customers delayed investment decisions after the UK Budget, leading to a decline in output for the first time in seven months. Concerns about the economic outlook, costs, and weak demand resulted in cutbacks in staffing, purchasing, and inventory holdings.

Overseas orders continued to decline for the 31st consecutive month, with lower demand from key markets like the US, China, EU, and Middle East. EU demand was particularly affected by weaknesses in the German automotive sector.

Looking ahead, 52% of respondents expect manufacturing output to rise in the coming year, with optimism driven by planned expansions, product launches, and hopes for economic recovery. However, concerns remain about geopolitical tensions, domestic politics, and the impact of higher employment costs on future domestic demand.



Read more at Morningstar: UK Manufacturing Shows Sharp Post-Budget Decline