UK manufacturing performance ‘drops like a stone’

Dropping through the neutral 50.0 measure into negative growth territory to post a figure of 47.4 for October, the PMI is down from September's marginally positive 50.8. Commenting on the figures, CIPS chief executive David Noble said: "We live in worrying times. The manufacturing sector, which helped to keep growth buoyant earlier in the year, is now struggling to keep its head above water. Following a short–lived improvement last month the manufacturing PMI has now dropped like a stone to a 28-month low and officially into contraction territory. "Confidence is being hit hard as the sector feels pressure from all angles, with continued uncertainty in the Eurozone being the main contributing factor as last week's short-lived optimism fades. Overall the mood is somewhat sombre, a loss of contracts amongst manufacturing companies and delays in projects has led to the fastest decline in new orders for 31 months and it seems that the backlog of work is also depleting fast along with employment prospects." EEF chief executive Terry Scuoler said the uncertainty from the Eurozone crisis was clearly now spilling over into weakening demand in the main European markets with confidence slowing markedly. "So long as the crisis remains unresolved this is likely to hold back growth in the next few months."