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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 February 2021 declined by 0.4% compared with the three months to November 2020. For the three months to February 2021, manufacturing output decreased by 3.8%, compared with the same period the previous year (2020).

Monthly manufacturing output in February 2021 rose by 1.3% compared to January 2021. Output rose in 7 of the 13 subsectors, the largest being a rise in manufacture of computer electronic and optical products. Manufacturing output in February 4.2% 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 UK manufacturing PMI for April 2021 was 60.9, up from 58.9 in March 2021 – a near-record high and signalling further recovery from the pandemic.

Rising output, employment and new orders contributed to the increased PMI. Increased production was attributed to loosening lockdown restrictions, improved demand and backlogs of work. New orders were dominated by the domestic market. The sector continued to face supply chain delays and input shortages, however.


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