UK manufacturing witnessed a ‘steep drop’ in new orders

UK factory production saw a “steep drop” in new orders last month dues to trade tensions according to the S&P Global UK manufacturing PMI survey.

The PMI survey which is watched closely by economists showed a reading in August of 47.0 compared to 48.0 in July.

Rob  Dobson, director at S&P Global Market Intelligence, said, Weak market conditions, US tariffs and downbeat client confidence all contributed to the dearth of new contract wins.

“Job cuts were also reported for a tenth successive month, with factory headcounts dropping to one of the greatest extents post-pandemic.”

New orders contracted at its “fastest pace in four months,” and manufacturers have linked the fall due to subdued client confidence.

Mike Thornton, head of industrials at RSM UK, said, “The latest fall in the manufacturing PMI reversed a three-month upward trend with a sharp fall in new orders dragging down the headline figure.

“We tend to see a slight drop-off in new orders seasonally as the summer holidays hit, but the fall this year was sharper than previous years.

“Hopefully it’s a seasonal blip and we will see further signs of a recovery later in the year.”