S&P Global PMI: UK manufacturing drops in Q4 ’24

The UK manufacturing sector struggled with increased challenges in early Q4 2024, as market uncertainty, slowing growth, and stretched supply chains weighed on new orders and output. The S&P Global UK Manufacturing PMI dropped to 49.9 in October from 51.5 in September, slipping below the neutral 50.0 mark for the first time since April.

Although output rose modestly for the sixth month, it was the weakest in this growth stretch, with consumer and investment goods supporting the slight increase amid a downturn in intermediate goods production.

New export orders declined for the 33rd consecutive month, impacted by lower demand from Europe, China, and the US.

UK manufacturing employment saw a modest uptick linked to production needs and backlog reduction, though many firms remained cautious on costs ahead of anticipated budget announcements.

Meanwhile, input cost inflation eased significantly, marking the lowest rate in ten months as some costs began stabilising. However, supply chain issues persisted, with delivery times reaching their highest delay since February, due to global shipping and vendor challenges.

Attribution: S&P Global

Subediting: M. S. Salama