The disappointing PMI figure of 50.8 – down from 52.9 in January –reflected a slump in exports, consumer goods and investment goods markets and strong deflationary pressure on input costs.
Rob Dawson, senior economist at Markit said: “The breadth of the slowdown is especially worrisome. The domestic market is showing signs of weakening while export business continued to fall. Price pressures also remained firmly on the downside, with the survey signalling input costs falling at a double-digit annual pace and average factory gate selling prices showing a further decline.”
Export business placed with UK firms fell for the second successive month according to the survey. Manufacturers reported weaker order books from Brazil, Europe, Russia and the US.
David Noble, group CEO at the Chartered Institute of Procurement & Supply commented: “Demand from the domestic market was weak and there was little hope to be gleaned from export orders which were in a similar downbeat mood. It appears the global slowdown is continuing to challenge market.”
British sites had endured a spate of economic uncertainty which stretched from from Beijing to Brussels stated Dave Atkinson, head of manufacturing at Lloyds Bank Commercial Banking. He said: “Continued volatility in the financial markets and signs of a slowdown in China are dragging on the confidence of the British manufacturing industry.”
Atkinson added: “Factory bosses will be tested in the coming weeks as the looming uncertainty of the EU Referendum starts to hang over management teams. Businesses will be exploring the impact it could have on their operations and investment in the long-term.”
