The British manufacturing sector contracted for the first time in six months in May, as companies scaled back production and employment as inflows of new business declined sharply, data from a survey by Markit Economics and the Chartered Institute of Purchasing and Supply (CIPS) showed Friday.
The seasonally adjusted purchasing managers' index (PMI) for the manufacturing sector dropped to 45.9 in May from 50.2 in April, hitting the lowest level in three years. A PMI reading below 50 indicates contraction in the sector, while one above suggests growth. The reading fell below the neutral mark for the first time since November 2011.
Production in UK factories contracted for the first time in six months in May, reflecting weaker global economic conditions, rising competition and a subdued domestic market. New orders received by manufacturing firms decreased in May, with both domestic and export markets showing weakness.
Companies reduced their workforces for the first time in five months in May, mainly reflecting lower levels of output and new orders. Meanwhile, the growth in both input costs and selling prices slowed during the month.
"The PMI sank to a three-year low as firms cut production in response to levels of new work nosediving," Rob Dobson, Senior Economist at Markit, said. "Perhaps of greatest concern is that this month's drop is not simply linked to the ongoing crisis of the Eurozone, but to increasing weakness of the UK domestic market, with overall order books collapsing at a faster rate than export orders."
For comments and feedback contact: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.