Manufacturing: Key Economic Indicators

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

In 2020, the manufacturing sector accounted for 9.6% of total UK economic output (Gross Value Added). In March 2021, it accounted for 7.3% of jobs.

Manufacturing Output

Manufacturing output in November 2021 was 1.1% higher compared to October 2021 and 2.2% below pre-pandemic levels (February 2020).

Manufacturing output for the three months to November 2021 decreased by 0.1% compared with the three months to August 2021. For the three months to November 2021, manufacturing output increased by 1.2%, 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 in January 2021 was 56.9, down from 57.9 in December. Although an 11-month low, manufacturers reported some easing of supply chain pressures and materials costs. Output in the sector grew in January, but there was a fall in new orders.