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Manufacturing: Key Economic Indicators

Published Friday, August 9, 2019

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 2018, it accounted for 8% of jobs.

Manufacturing Output

Total manufacturing output fell by 2.3% in the 3 months to June 2019 compared with the previous 3 months. Manufacturing output fell by 0.9% in the 3 months to June 2019 compared with the 3 months to June 2018.

Manufacturing output fell by 0.2% between May 2019 and June 2019. The earlier 3.9% fall between March and April 2019 had been its largest fall since June 2002.

 

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 July 2019 the UK Manufacturing PMI was 48.0, unchanged from June, which was the lowest since October 2012. The PMI has fallen in six of the last seven months.

According to Markit/CIPS, the sector’s poor performance in July was due to “political uncertainty, a global economic slowdown and the unwinding of stocks built prior to the original Brexit date.”

 Manufacturing PMI

Commons Briefing papers SN05206

Author: Gloria Tyler

Topics: Economic situation, Manufacturing industries

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