UK factory output falls in March to mark eighth straight monthly decline

British manufacturers report lower activity for last month, but supply chain problems seen easing

Output in UK manufacturing dipped again in March. PA

British manufacturers last month slid deeper into decline, meaning the sector has been in contraction for eight months in a row, a survey showed on Monday.

The S&P Global/CIPS UK manufacturing purchasing managers' index (PMI) fell to 47.9 last month from 49.3 in February, slightly below initial estimates. Readings below 50 indicate a contraction in activity.

“The downturn in output was driven by declines in both the consumer and intermediate goods sectors,” S&P Global said. “In contrast, investment goods production rose for the second month in a row.”

The survey put costs paid by manufacturers at their lowest level since June 2020, although analysts said this could be short-lived given the rise in the price of oil brought on by a production cut by Opec+ members at the weekend.

The survey also showed the biggest improvement for three decades in average supplier delivery times. This was in sharp contrast to the supply chain problems of two years ago, when manufacturers reported record delays during the Covid-19 pandemic.