/ world today news/ Britain’s manufacturing sector suffered a setback in its efforts to return to growth, as output and employment fell more sharply in December than in the previous month, according to a survey published on Tuesday.
The final Standard & Poor’s manufacturing purchasing managers’ index (PMI) fell to 46.2 in December, ending a three-month period of improvement and down from a seven-month peak of 47.2 in November.
The reading also fell slightly from December’s preliminary estimate of 46.4 and was below the growth threshold of 50.0 for the 17th straight month.
Britain’s manufacturing sector bore the brunt of rising borrowing costs. In contrast, preliminary indexes of business activity for December showed that the country’s much larger services sector posted its strongest growth in six months.
Rob Dobson, director of market research at Standard & Poor’s, said there was a drop in new orders for manufacturers in domestic and export markets, particularly in the European Union, and confidence in the sector was at its weakest for a year.
The decline in inventory, purchasing and employment levels reflected a cautious approach to spending, he said.
“With concerns about high interest rates and the cost-of-living crisis hurting demand, the outlook for manufacturers over the coming months remains decidedly bleak,” Dobson said.
“However, the decline in demand has had some positive impact on supply chains, with suppliers reducing raw material prices and supplier lead times showing further improvement.”
Manufacturers raised prices slightly for the second month in a row, helped by the capital goods sector. The drop in manufacturing costs was the smallest since May.
Translation: V. Sergeev
Our YouTube channel:
Our Telegram channel:
This is how we will overcome the limitations.
Share on your profiles, with friends, in groups and on pages.
#Reuters #Prospects #manufacturing #revival #suffered #setback #December
