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Manufacturing: Key Economic Indicators

Published Tuesday, June 11, 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 rose by 1.2% in the 3 months to April 2019 compared with the previous 3 months. Manufacturing output rose by 1.0% in the 3 months to April 2019 compared with the 3 months to April 2018.

Manufacturing ouput fell by 3.9% between March and April 2019, its largest fall since June 2002.  The largest downward contribution this this fall was within transport, notably motor vehicles, which fell by a record 24%.

 

Purchasing Managers’ Index (PMI)

The Markit/CIPS UK Manufacturing PMI is an important indicator of confidence in the sector.

In May 2019 the UK Manufacturing PMI was 49.4, down from 53.1 in April. The May figure was the lowest since July 2016, and had not previously dropped below 50 since this point.

In May, new orders, backlogs and export business all declined, although expectations about future production increased slightly. Employment in the sector fell slightly, while price increases remained very low.

(A figure above 50 indicates that output is increasing).

 

Commons Briefing papers SN05206

Author: Gloria Tyler

Topics: Economic situation, Manufacturing industries

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