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The UK manufacturing sector fell further into contraction territory in March, according to survey data on Monday.
The S&P Global/CIPS UK manufacturing purchasing managers’ index fell to 47.9 points in March from 49.3 the month before. February’s reading had been a seven-month high.
This marks the eighth consecutive month that the PMI reading has stayed below the neutral 50-point mark.
S&P explained that output was scaled back in response to subdued market demand, declining new export orders, and a preference among companies for reduced inventory holdings. It added that market conditions remained ‘tough’ in March.
However, business confidence strengthened to a 13-month high, with almost 60% of UK manufacturers forecasting output to rise over the coming year.
Rob Dobson, director at S&P Global Market Intelligence, said: ‘Although total new orders saw a fractional increase, this followed on from a nine-month sequence of contraction and suggests that order book levels remain low overall.
‘There was better news on the price and supply fronts during March, however. Input price inflation hit its lowest level since June 2020. ’
The PMI is compiled by S&P Global from responses to surveys sent to around 650 manufacturers in the UK, with the data collected between February 10 and 23.
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