Sharpest fall in UK manufacturing since 1992

02 10 2008 United Kingdom

The UK's manufacturing activity fell in September at the fastest rate for 17 years, according to a survey by the Chartered Institute of Purchasing and Supply (CIPS)

The CIPS purchasing managers' index fell to 41 last month, its lowest reading since January 1992. Any reading below the 50 mark points to a contraction in business activity and September’s fall was much sharper than analysts had predicted.

Domestic demand was particularly weak and orders from overseas were at a low level in spite of the weakness of the pound. The consumer goods sector was the worst hit and export orders showed the biggest slump in seven years.

This survey shows the manufacturing sector falling back for the fifth consecutive month, adding to fears that the UK economy is moving into recession. The latest official figures showed the lowest quarterly growth in GDP since 1992.

Economists began to forecast that the Bank of England’s monetary policy committee will be under increasing pressure to cut interest rates at its meeting on October 9 from their current level of 5 per cent.

Back to top of page

© 2008 Copyright topenterprise uk ltd All rights reserved
Property of topenterprise uk ltd and made available under the terms of use notice on this web site