Manufacturing: Key Economic Indicators

Manufacturing is one of the production industries, which also include mining, electricity, water & waste management and oil & gas extraction.

In 2019, the manufacturing sector accounted for 9.7% of total UK economic output (Gross Value Added). In September 2019, it accounted for 8% of jobs.

Manufacturing Output

Manufacturing output in July 2021 was unchanged compared to June 2021. Four of the 13 manufacturing sub-sectors saw a rise. Manufacturing output in July 2021 remained 2.4% below pre-pandemic levels (February 2020).

Total manufacturing output for the three months to July 2021 increased by 0.9% compared with the three months to April 2021. For the three months to July 2021, manufacturing output increased by 15.3%, compared with the same period the previous year.

Purchasing Managers’ Index (PMI)

In the Markit/CIPS PMI, a value of 50 means that there is no change compared to the previous month. Values above 50 indicate an expansion, and values below 50 a contraction.

The flash UK manufacturing PMI for September 2021 was 56.3, down 7% from 60.3 in August. Although still in growth September is the fourth month running of slowing output and the lowest rate since February. Materials shortages were the main factor constraining output and there were also signs of demand softening. Firms also reported staff shortages, supply chain disruptions and increasing input prices.