LONDON (Businesshala) – British factories in September suffered their weakest month since February, when the country was still largely under lockdown, according to a survey that showed supply chain problems and staff shortages for manufacturers. outlining the effect of
The IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index fell for the fourth straight month to 57.1 from 60.3 in August, although the final level was higher than the initial September reading of 56.3.
Delays in deliveries amid reports of freight traffic delays, staff crunch, disruption due to COVID-19 and Brexit, shortage of delivery drivers and port delays showed the biggest jump in PMI’s history.
New export work shrank for the first time in eight months and job growth was at its weakest since January, with smaller manufacturers cutting staff.
Last week, the Bank of England revised its expectations for economic growth in the third quarter of 2021 due to supply constraints, which now include fuel shortages due to a shortage of truck drivers.
Barriers have pushed up prices and inflation for manufacturing inputs was not far from a record high in September.
The BoE said last week it expected consumer price inflation to be above 4% at the end of the year, more than double its 2% target, strengthening the case for an interest rate hike for the first time since the pandemic.
Despite their current problems, the companies participating in the PMI survey remained optimistic about the year ahead, expecting a 62% increase in production.