Latest PMI: UK manufacturing’s winter of discontent slips into spring

Although the PMI edged higher to 48.3 in March, an improvement on February's four-month low of 47.9, the shift was insufficient to raise the headline index back above the neutral mark of 50. UK manufacturers reported further declines in both production and new orders during the latest survey period. Output fell at the steepest pace since last October. Lower output was linked to tough market conditions and subdued client confidence. There were also a number of reports mentioning stock management initiatives and ongoing bad weather conditions. Incoming new export orders contracted for the fifteenth month running in March. There were reports of weak demand from Europe and strong competition in the US and South Asia markets. Job losses were reported for the eighth month running, reflecting company restructuring, redundancies and natural wastage. Rob Dobson, senior economist at survey compiler Markit, said the data indicated that UK manufacturing remained a drag on the broader economy. "The onus is now on the far larger service sector to prevent the UK from slipping into a triple-dip recession," he added. CIPS CEO David Noble said manufacturers' "winter of discontent" had extended into March, with activity in manufacturing falling at the fastest pace since October and the absence of new orders bringing little hope of an uplift in spring. EEF chief economist Lee Hopley said that "another month of falling export demand" was of particular concern.