Commenting on today’s PMI data, Fhaheen Khan, Economist at Make UK, said:
“Following shocking declines in output during the most difficult moments of lockdown, unsurprisingly the UK manufacturing PMI has been in expansion territory for the third month running. A mixture of new orders, and old orders, have resulted in increased output as firms across the nation have reported the easing of lockdown measures, combined with consumer-led consumption policies, have helped to restart supply-chains.
Indeed, this highlights the sector’s role as the most likely candidate to lead the UK’s economic recovery whilst facing one of its deepest recessions on record.
Yet, a number of concerns that may hinder that recovery remains and that this honeymoon period for above average growth may be short-lived.
Particularly, as the Job Retention Scheme expires at the end of October, Make UK’s most recent data already indicate job losses are picking up as firms are shedding weight in order to cut costs but risk the possibility of being unable to operate in the coming months. The Government must immediately remodel their approach to the JRS and extend it to the most vulnerable subsectors, such as Automotive and Aerospace, which are dealing with a different schedule for recovery and require a more tailored approach for support.”