UK Manufacturing shows a dip in fortunes

The Chartered Institute of Purchasing and Supply’s (CIPS) purchasing managers’ index fell to 41 last month which marks its lowest since the recession of 1992, shrinking at its fastest rate for 17 years.

This latest survey will only go towards fuelling the current climate of discontent as the UK stumbles into recession.

The figure of less than 50 on the index indicates the current weakness of demand, with UK clients cancelling orders and it is the fifth consecutive month of reduction in the manufacturing sector.

The consumer goods sector was the worst affected with output down, and a limited supply of new orders as many clients are postponing new orders. It is therefore that the CIPS survey reveals the difficulty that faces British manufacturers.

This retraction is likely to have long-term implications on the labour market.

There is some hope though in the fact that the falling price of oil and other commodities has begun to lighten the load, meaning that input cost inflation is currently at a seven month low.

The pound has also fallen by 10 percent against the dollar and 8 percent against the Euro which as a zone is Britain’s biggest trading partner.

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