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Manufacturing: Key Economic Indicators

Published Monday, February 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 fell by 0.9% in the 3 months to December 2018 compared with the previous 3 months, and by 1.5% compared with December 2017. This is largest in monthly data compared to the previous year since May 2013.

11 out of 13 of the manufacturing sub-sectors decreased in the 3 months to December, highlighting widespread weakness across the sector.

 Output

Purchasing Managers’ Index (PMI)

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

In January 2019 the UK Manufacturing PMI was 52.8, down from 54.2 in December 2018. The January figure was the second lowest figure since July 2016.

In January, output and new orders slowed and employment fell for only the second time in the past two-and-a-half years. Meanwhile, Brexit preparations led to a sharp rise in purchasing activity and stockpiling of inputs at warehouses. The degree of positive sentiment regarding the forthcoming year dipped to a 30-month 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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