After remaining relatively stable over the past three months, November saw the seasonally-adjusted Purchasing Managers’ Index (PMI – a composite indicator designed to provide an overall view of the manufacturing economy) fall to its lowest level since January 1999. The index recorded 45.6, down from a revised 46.5, signalling contraction of the UK manufacturing economy for the ninth consecutive month.
The latest data on manufacturing production continued to point to manufacturing recession during November, as output contracted for the ninth consecutive month. This was largely in line with shrinking order books, which have deteriorated continually since April. Panel members reported that new capital and investment expenditure by clients had been significantly cut in recent months, and this was reflected in the latest data on both domestic and foreign order books. November’s seasonally adjusted New Orders Index recorded a level of 45.5 compared to 45.9 in October.
