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Manufacturing: Key Economic Indicators

Published Thursday, October 10, 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 March 2019, it accounted for 8% of jobs.

Manufacturing Output

Total manufacturing output fell by 1.5% in the 3 months to August 2019 compared with the same 3 months in 2018.  

This was driven by big falls in output from most of the major manufacturing sub-sectors, including food, beverages and tobacco manufacturing (which fell by 2.0%) and computer, electronic and optical products manufacturing (which fell by 3.5%).

 

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 September 2019 the UK Manufacturing PMI was 48.3, up from 47.4 in August. Although the September PMI was a 4-month high, it means that the index has been below the 50 mark for five successive months, its longest sequence below that mark since mid-2009. The August PMI was the lowest since July 2012.

According to Markit/CIPS, the sector’s poor performance in September was due to further falls in new orders, output and employment. The consumer goods sector was the only sector to see output rise in this month.

Commons Briefing papers SN05206

Author: Gloria Tyler

Topics: Economic situation, Manufacturing industries

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