Latest data released by Markit - 1 June 2020
- Prior 32.6
The preliminary report can be found here. UK factories suffer a sharp fall in activity in May, but it is better than the conditions in April. Output and new orders continue to fall sharply in historical terms but they have eased from the record deterioration in April.
Markit notes that:
"Those who typically see the glass half empty will note that the UK manufacturing sector remained mired in its deepest downturn in recent memory. Output, new orders and employment fell sharply again in May as restrictions to combat the spread of COVID-19 caused further widespread disruptions to economic activity, demand and global supply chains.
"However, the glass-half-full perspective is one where the rate of contraction has eased considerably since April, meaning - absent a resurgence of infections - the worst of the production downturn may be behind us. Pressure on manufacturers should ease further as lockdown restrictions are loosened, customers return to work and global activity restarts.
"However, changes to working practices, uncertainty about how long the COVID-19 restrictions may be in place for, weak demand and Brexit worries all suggest the UK is set for a drawn-out economic recovery. This will make the "new normal" one of the toughest recovery environments many manufacturers will ever have to face."