UK Business News, 01 December 2011

 

A Markit/CIPS survey shows that the UK manufacturing sector contracted for a second successive month in November. The decline has been largely caused by a fall in output, in response to demand from both domestic and export clients. As a result the labour market has contracted at its fastest pace in two years, seeing job losses occur.

 

The seasonally adjusted Markit/CIPS UK Manufacturing PMI fell to 47.6 in November, its lowest level since June 2009, and down from 47.8 in October.

 

The decline in production was attributed to reduced new order inflows, weaker global and domestic market conditions and clients becoming more reluctant to spend.

 

Rob Dobson, Senior Economist at Markit and author of the Markit/CIPS Manufacturing PMI:

 

“The manufacturing engine has run out of steam. Output is falling at the fastest rate since early 2009 as order inflow from domestic and overseas markets continue to deteriorate. Jobs are consequently being lost at the fastest rate for over two years as producers seek to scale back operating capacity in line with a darkening economic outlook.

 

“The lack of new work is forcing manufacturers to rely on previously-placed orders to avoid sharper cutbacks in output and employment. This cannot go on indefinitely, and job losses will inevitably mount if order books continue to weaken.”

 

Source

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