UK December final manufacturing PMI 45.3 vs 44.7 prelim

A slight revision higher but it doesn't take away from the fact that the UK manufacturing downturn is accelerating towards the end of last year. Of note, production and new orders continued to fall at faster rates but at least selling price and input cost inflation did ease a little last month. S&P Global notes that:

“The UK manufacturing downturn took a further turn for the worse at the end of the year. Output contracted at one of the quickest rates during the past 14 years, as new order inflows weakened and supply chain issues continued to bite. The decline in new business was worryingly steep, as weak domestic demand was accompanied by a further marked drop in new orders from overseas.

"Clients are increasingly downbeat and reluctant to commit to new contracts, not just in the UK but also in key markets like the US, China and the EU. The weakness in the latter is still being exacerbated by the constraints of Brexit, as higher costs, administrative burdens and shipping delays encourage increasing numbers of clients to shun trade with the UK. The downturn in industry is also increasingly being felt in the labour market, with manufacturers now shedding jobs at the quickest pace in over two years.

“There was slightly better news on the inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term front, as rates of increase in input prices and factory selling prices both slowed further in December. However, as this is mainly just the result of weakened demand reducing supply imbalances it is unlikely to provide much real respite for manufacturers and their operating margins as they head into what looks like being a difficult 2023.”