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The downturn in the UK's manufacturing sector persisted in September, according to new figures from S&P Global on Monday.
The purchasing managers' index for September was 48.4 points, rising from 47.3 in August. The reading moved closer to the 50.0 point no-change marker, indicating the rate of contraction slowed during the month.
It came in slightly below a previous flash estimate of 48.5 points, however.
‘The downturn in UK manufacturing continued at the end of the third quarter, meaning the goods-producing sector looks set to have acted as a drag on GDP. Manufacturers have once again cut back production as new order intakes declined for the fourth successive month. Factories are reporting tough market conditions both at home and abroad. Disappointingly, exports continue to fall despite the more competitive exchange rate,’ commented Rob Dobson, director at S&P Global Market Intelligence.
Contractions were seen across the consumer, intermediate and investment goods industries, with the steepest decline seen in intermediate goods producers.
‘With existing headwinds from the cost-of-living crisis likely to be exacerbated by the current volatility in financial markets, growing economic uncertainty and further increases in borrowing rates, the industrial sector is likely to remain in the doldrums during the coming quarter to add to deepening recession risks,’ Dobson concluded.
The UK manufacturing PMI is compiled from responses to surveys sent to purchasing managers in around 650 British manufacturing firms, with data collected between September 12-27.
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