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

Total manufacturing output for the three months to December 2020 (Q4) increased by 3.3% compared with the three months to September 2020.

For Q4 2020, manufacturing output decreased by 3.5%, compared with the previous year (Q4 2019)

Monthly manufacturing output in December rose by 0.3% compared to November, driven by manufacturing of chemicals. 8 of the 13 subsectors displayed upwards contributions. Manufacturing output in December 2020 was 3.4% below pre-pandemic levels (February 2020).

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 manufacturing PMI for February 2021 was 54.9, up 1% from 54.1 in January.

Manufacturing companies cited supply chain disruptions as a factor limiting production. These were attributed to international shipping delays, worldwide demand for raw materials and Brexit-related trade frictions.