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 May 2021 increased by 1.5% compared with the three months to February 2021. For the three months to April 2021, manufacturing output increased by 21.8%, compared with the same period the previous year.

Monthly manufacturing output in May 2021 fell by 0.1% compared to April 2021. The fall was led by transport equipment industries. Manufacturing output in May 2021 was 3.0% 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 July 2021 was 60.4, down from 63.9 in June indicating strong expansion which was nevertheless slightly lower than the previous two months due to weaker output and order growth. While demand remained strong, there continue to be supply chain delays and shortages which are restricting output volumes.