UK March final manufacturing PMI 44.9 vs 44.6 prelim

• Prior was 46.9

Key Findings:

• Manufacturing PMI falls to 17-month low
• Business optimism at weakest level since November 2022
• Steeper drops in output, new orders and new export business

Comment:

Rob Dobson, Director at S&P Global Market Intelligence said:

“March proved to be another tough month for UK manufacturers. Output contracted at the quickest pace since October 2023, as new business growth fell at the steepest rate for one-and-a-half years, suffering one of its sharpest falls since the pandemic lockdown of 2020.

“Companies are being hit on several fronts. Many reported that domestic market conditions are deteriorating, costs are rising due to changes in the national minimum wage and national insurance contributions, geopolitical tensions are intensifying, and global trade faces potential disruptions from tariffs.

"Although the impact on production volumes was widespread across industry, it was again small manufacturers that took the hardest knock.

“The outlook is also darkening, with overall business optimism plunging to its lowest levels since late-2022. Fears about current and future performance put manufacturers on an increasingly cost cautious footing, with employment, stock holdings and purchasing all falling as companies looked to work leaner and protect cash flow, margins and competitiveness. Many firms are clearly hunkering down as they expect difficulties to continue in the coming months."