Manufacturing: Key Economic Indicators

Manufacturing: Data on manufacturing jobs, output and producer confidence.

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

In 2018, the manufacturing sector accounted for 10% of total UK economic output (Gross Value Added). In September 2019, it accounted for 8% of jobs.

Manufacturing Output

Total manufacturing output fell by 1.2% in the 3 months to January 2020 compared with the 3 months to October 2019.

9 out of 13 manufacturing sub-sectors declined, led by transport equipment and food, beverages and tobacco.

Monthly manufacturing output in January compared to December was up 0.2%. This reflects a mixed picture with only 6 of the 13 subsectors displaying upwards contributions.

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 PMI for March 2020 was 47.8, this was a fall of 3.9% on the February level.  Both output and new orders fell at the fastest rates since 2012.

Markit/CIPS observed an intensification of supply chain disruption and a record low slump in business optimism. The effects were felt across manufacturing, with output falling sharply in all major sectors, especially transport but excepting food production and pharmaceuticals.