UK manufacturing slumps to record low as supply chains collapse from the pandemic

The UK's 66 million inhabitants are living through their sixth consecutive week of nationwide lockdown prompted by the ongoing pandemic of the COVID-19 disease. EPA

UK manufacturing contracted more than expected last month as output, new orders, and employment all dropped at the fastest pace on record amid the coronavirus pandemic.

IHS Markit’s April purchasing managers index fell to the weakest reading since the series began in 1992 and below an initial flash reading published last month. Every sub-index declined from March as a nationwide lockdown shuttered businesses and brought activity to a standstill.

Only companies producing medical or food-related goods saw increased orders or output, Markit said.

The data also underscored the impact the pandemic is having across global supply chains. Lead times lengthened as firms reported logistical issues, border difficulties for overseas goods, delays to shipping and air freight as well as supplier closures.

“The outstanding question remains how long the current restrictions will need to remain in place, and which sectors can start to safely reopen,” said Rob Dobson, director at IHS Markit. “The longer the global economy remains in lockdown the greater the cost to industry will grow, and the greater the likelihood that more jobs will be cut.”

The survey was compiled between April 7 and April 27.