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Manufacturing: Key Economic Indicators

Published Friday, January 24, 2020

Manufacturing: Data on manufacturing jobs, output and producer confidence.

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Manufacturing is one of the production industries, which also include mining, electricity, water & waste management and oil & gas extraction.

In 2018, the manufacturing sector accounted for 10% of total UK economic output (Gross Value Added). In September 2019, it accounted for 8% of jobs.

Manufacturing Output

Total manufacturing output fell by 1.2% in the 3 months to November 2019 compared with the same 3 months in 2018.

This was the biggest fall over a year since the three months to December 2018.

The biggest falls in manufacturing were in the chemicals industry and in the rubber and plastic industry.

Output

Purchasing Managers’ Index (PMI)

In the Markit/CIPS PMI, a value of 50 means that there is no change compared to the previous month. Values above 50 indicate an expansion, and values below 50 a contraction.

In January 2020 the UK Manufacturing PMI was 49.5, a recovery from December’s 47.5. This was a rise of 4% on the month to only fractionally below the neutral 50.

According to Markit/CIPS, this implies a broad stabilisation of business conditions, with increases in new work and employment (partly offset by a fall in stocks of purchases).

Commons Briefing papers SN05206

Author: Gloria Tyler

Topics: Economic situation, Manufacturing industries

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