Live, rolling coverage of business, economics and financial markets as British home prices drop by 5.3% from peak last year
It has been a shocking two years for Britain’s factories.
There was a big elastic band recovery following the depths of the pandemic lockdowns, but that surge in demand put global supply chains completely out of joint – with car factories in particular struggling to source computer chips.
The PMI sank to a 39-month low as output and new orders contracted at rates rarely seen outside of major periods of economic stress such as the global financial crisis of 2008/09 and the pandemic lockdowns.
Manufacturers reported a weakening economic backdrop as demand is hit by rising interest rates, the cost-of-living crisis, export losses and concerns about the market outlook. While this is being felt across the manufacturing industry, business-to-business companies are especially hard hit. Intermediate goods producers saw the steepest drops in output, new orders and employment as a result.
Manufacturers are reporting a weakening economic backdrop, as demand is hit by rising interest rates, the cost-of-living crisis, export losses and concerns about the market outlook.
