UK manufacturing continues recovery but jobs still lost in September

UK economy view of City of London

The latest PMI Survey shows the UK manufacturing sector growing again in September 2020 following lockdown.  However, job losses are increasing.

What are the figures?

IHSMarkit issue an index number for each survey. If the number is 50 or higher, it means that the economy is growing. If the number is 49.9 or less, it means the economy is contracting.

  • Manufacturing rated as 54.1

The survey issued on 1st October covers September.

According to the survey’s Duncan Brock of CIPS;

““Manufacturing made solid progress towards recovery
in September…

 

New pipelines of work
increased for the third month in a row and export orders
the strongest for almost two years.
…Some firms continued to make use of the
furlough scheme to retain their workforce, but larger
numbers of redundancies this month means we have a
wretched end to the third quarter as job numbers fell for
the eighth month in a row.

In spite of these difficulties, the sector’s glass remained
half full, and optimism for the year ahead was
sustained. Some businesses were using forward buying
strategies to build stocks for Christmas and Brexit,
which may boost employment levels, but it is anyone’s
guess whether more lockdown disruptions derail this
hope.”

How does this compare with other countries?

So, the UK overall figure was 54.1  How did other similar countries do?

  • Germany 56.4
  • France 52.2
  • Eurozone* 53.7

Summary

So, although the PMI survey is just that, a survey, it seems likely that UK manufacturing is growing again and starting to recover from Covid related measures.  As the recovery continues, job losses now seems to be a major issue for employers and employees.

Want to learn more or see where the information came from?

Read the IHS Markit UK press release here.

Learn more about the IHS Markit PMI surveys here

Learn more about NewsBrokerUK here.

Notes

* Eurozone countries are the 19 EU countries that use the Euro currency.

The PMI surveys are put together by a research group called IHS Markit. These surveys are considered a respected source of research which ask companies how they are doing. For example they ask whether orders and sales are up or down. Whilst the PMI surveys are not official economic statistics, they are a useful indicator of how things might be going, and are released before the official numbers.

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