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The downturn in UK manufacturing worsened in September as output, orders and employment all fell at sharper rates, survey results from S&P Global showed on Wednesday. The seasonally adjusted manufacturing purchasing managers’ index dropped to 46.2 points in September from 47.0 in August, marking its lowest level since April and remaining below the neutral 50-point mark for the 12th straight month. The final figure came in line with the flash estimate published last Tuesday. Production contracted for the 11th consecutive month, with declines across consumer, intermediate, and investment goods. New orders fell for a 12th successive month, one of the steepest drops in two years, as firms cited subdued client confidence, uncertainty linked to US tariffs, and high energy and labour costs. Export demand also weakened, with orders from the US, EU, Middle East and Asia declining sharply. Supply chains remained under pressure, with vendor lead times lengthening for the 21st straight month. Employment fell for the eleventh consecutive month, with firms cutting full-time, part-time and agency staff to contain costs following increases in the minimum wage, national insurance contributions and energy bills, according to survey respondents. Business confidence remained subdued, although some manufacturers hoped that lean inventories and easing cost pressures would support a recovery. Input and output price inflation slowed to nine-month lows. Rob Dobson, director at S&P Global Market Intelligence, said: ‘Manufacturers are facing an increasingly challenging environment, with intakes of new business and levels of production hit by weak market sentiment, a dearth of new export work and a high-cost environment exacerbated by tax and labour cost rises.’ S&P Global compiles the survey from responses to questionnaires sent to around 650 purchasing managers in the UK manufacturing sector. Responses are collected in the second half of each month. The services and composite PMIs for September will be released by S&P Global on Friday. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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