Commenting on today’s PMI data, Seamus Nevin, Chief Economist at Make UK, the manufacturers’ organisation, said:
“Today’s data proves that May’s plunge below the 50-threshold was not just a one-off with UK manufacturing activity collapsing to its lowest level in six and a half years. Businesses are cutting back on both day-to-day and capital spending with the contraction in output a reflection of growing Brexit uncertainty and, worsening global trade winds.
“Ominously, the PMI’s output measure dropped to 47.2 from 50.3 in May, the biggest contraction in a single month since October 2012. Firms are reporting that export demand is falling month-on-month as customers around the world are losing confidence in the future of the UK market.
“Looking ahead the picture shows little sign of improvement with signs of weakness now spreading across the Eurozone. Given this outlook, increasing competition to see who can race to the bottom and act tough on ‘no deal’ is the height of irresponsibility with zero understanding of the consequences.”