UK manufacturing falls back into contraction as trend in new business remains weak

The UK manufacturing sector fell back into contraction territory in March, as output declined following a slight increase in February. Market conditions remained subdued overall, as new export business decreased and overall new order books posted only fractional growth. There was positive news on the price and supply fronts, however, as cost inflation eased and average supplier lead times improved to the greatest extent in survey history. The seasonally adjusted S&P Global / CIPS UK Manufacturing Purchasing Managers’ Index® (PMI®) fell to 47.9 in March, down from February’s seven-month high of 49.3