Commenting on today’s PMI data, Seamus Nevin, Chief Economist at Make UK, the manufacturers’ organisation, said:
“Today’s numbers prove that the UK economy is undeniably on a downward trajectory with output, new orders, and employment all falling again. Companies are cutting back on both day-to-day spending and capital investment as the downturn in activity continues, reflecting growing fears of a crash out Brexit and worrying global trade conditions.
“This is not a good time for our economy to be preparing to go it alone. Eurozone Manufacturing PMI also fell, signalling the quickest decline in the region's manufacturing sector since the peak of the Global Financial Crisis in 2012. This came off the back of the two major economies of France and Germany each suffering a renewed decline. France is showing a modest signs of deterioration in business conditions after two months of improvement while the downturn in Germany's manufacturing sector also gathered pace.
“The downturn experienced by the UK’s main trading partners, and slower world economic growth, combined with foreign customers routing supply chains away from the UK in advance of Brexit has hit British business hard in recent months. The reduction in cost inflation will perhaps come as some light relief, however, as manufacturers prepare for the considerable extra expense of stockpiling coming their way ahead of a possible no deal exit at the end of October.”