Home Brexit Factory output slows in February over Brexit and Covid

Factory output slows in February over Brexit and Covid

by LLB Finance Reporter
1st Mar 21 12:04 pm

UK factory output fell to its lowest level since May as manufacturing companies were weighed down by supply chain disruptions caused by Brexit and the pandemic.

IHS Markit/CIPS Purchasing Managers’ Index (PMI) who track output and new orders, supply times, input costs and employment fell to 55.1 compared to 54.1 in January.

The increase in the index was driven by higher raw material cost with longer delays which ordinarily would be a sign of an increase in demand, according to those who were behind the report.

Companies have warned that due to Brexit complications and Covid, this has impacted the supply chains with trade.

Rob Dobson, director at IHS Markit said, “The UK manufacturing sector was again hit by supply chain issues, Covid-19 restrictions, stalling exports, input shortages and rising cost pressures in February.

“Look past the headline PMI and the survey reveals near stagnant production, widespread shipping and port delays and confusion following the end of the Brexit transition period.

“In fact the biggest contributor to the headline PMI reading was a near-record lengthening of supplier delivery times.

“However, while normally a positive sign of an increasingly busy economy, the recent lengthening was far from welcome, more often than not linked to problems resulting from Brexit and Covid-related.”

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