The UK manufacturing sector activity contracted less-than-expected in the month of March, the final report from IHS Markit showed this Monday.
The seasonally adjusted IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) was revised down to 47.8 in March versus 47.0 expected and 48.0 – March’s first reading.
Key points
Business optimism slumps to series-record low.
Supply chain disruption intensifies.
Rob Dobson, Director at IHS Markit, commented on the survey
“The latest survey numbers underscore how the global outbreak of COVID-19 is causing huge disruptions to production, demand and supply chains at UK manufacturers. Output and new orders fell at the fastest rates since mid- 2012, while supplier delivery times lengthened to the greatest extent in the 28-year survey history as shortages grew more widespread. The resulting job losses took the rate of decline in employment to its highest since July 2009.”
“The effects were felt across most of manufacturing, with output falling sharply in all major sectors except food production and pharmaceuticals. The transport sector, which includes already-beleaguered car-makers, suffered the steepest downturn.”
FX implications
The GBP bears retain control following the downward revision to the UK Manufacturing PMI for March, as GBP/USD attempts a bounce from daily lows of 1.2330.
At the press time, Cable trades at 1.1.2344, still down -0.64% amid notable US dollar demand across the board.
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