UK manufacturing growth slows to a 13-month low as output and new orders both expanded at reduced rates while new export business slumped for a second straight month. Ongoing supply shortages and escalating inflation pressures also weighed on overall activity. S&P Global notes that:
“March saw a marked growth slowdown in the UK manufacturing sector, with rates of expansion for production and new orders both easing and new export business suffering back-to-back declines. The slowdown in consumer goods output was especially marked.
“Manufacturers are being hit by several headwinds simultaneously, as supply shortages, greater caution among clients, escalating inflationary pressures, ongoing Brexit factors and rising geopolitical tensions all hamper the upturn. It is therefore little surprise that business optimism has slumped to a 14-month low. The inflationary picture also provides no signs of inflation pressures abating, with the already elevated rates of increase in input costs and selling prices both re-accelerating. Job creation is holding up better though, with a further solid increase seen in March, as companies continue to respond to continued growth and address ongoing labour shortages. However, such strong hiring looks unsustainable in the face of the mounting headwinds.”
