Manufacturing sector performance tracker

To be able to provide the best possible service to our manufacturing clients, we need to understand the health of the sector that they operate in. Through the UK Manufacturing Purchasing Managers Index (PMI), we monitor key industry metrics such as new order numbers, inventory levels, production levels, supplier deliveries, and employment rates. We regularly share our thoughts on the performance of the manufacturing industry with our clients, providing up to date analysis on the latest available data and predictions as to the future prosperity of the industry.  This information enables our clients to regularly benchmark their own performance against industry averages and helps us to further understand the challenges impacting them.

Understanding the Purchasing Managers Index

A PMI reading over 50 indicates growth or expansion of the UK manufacturing sector as compared to the previous month, while a reading under 50 suggests contraction.  

Manufacturers face double-whammy of sharp energy price increases and reduced consumer confidence as recession worries replace supply chain woes

01 September 2022

Mike Thornton, national of head of manufacturing at RSM UK, comments on the latest CIPS UK Manufacturing Purchasing Managers’ Index which has decreased significantly from 52.1 in July to 47.3 in August.

Resilient manufacturers need to hold nerve on investment despite economic headwinds

01 June 2022

Although the manufacturing PMI decreased in May from 55.8 to 54.6, the relatively small fall shows that the manufacturing sector is coping well with supply chain disruption which continues to be exacerbated by the Russia-Ukraine crisis and the latest lockdowns in China. The stocks of finished goods balance sits at the highest level this decade which suggests resilient manufacturers have adapted well to the global shock of Covid and component shortages, and are getting a grip on their supply chains, despite a multitude of headwinds.

Consumers hit with rising prices as manufacturers protect margins

05 May 2022

Manufacturing production rose slightly but remained relatively flat in April, driven in part by a drop in future output confidence from 73.8 to 72.9, which sees optimism falling to similar levels as the first Covid wave. This has been fuelled by inflationary nervousness and concerns around future supply chain disruption.

First signs of Russia-Ukraine conflict derailing UK manufacturing recovery

06 April 2022

Manufacturing production slowed in March, mainly driven by future output sharply dropping from 80.0 to 75.8 which is the lowest level in over a year; and could be an early indication to further turbulence ahead for the manufacturing sector.

Ukraine crisis set to hit supply chains

02 March 2022

The latest CIPS UK Manufacturing Purchasing Managers’ Index has increased from 57.3 to 58.0 with manufacturing production growth in February being driven by output jumping back up to 79.5 following a slight lull in January due to Christmas shutdowns; and it looks like manufacturers are recruiting less in February than at the start of the year, suggesting that businesses are filling much-needed roles.

Workforce headwinds could derail UK manufacturing post-Covid recovery

02 February 2022

The latest CIPS Manufacturing PMI which has moved from 57.9 to 57.3 demonstrates the resilience of the UK manufacturing sector yet again. Manufacturers have reduced backlogs and increased output, despite ongoing supply chain disruption and Christmas shutdowns, which is encouraging to see. However, longer term headwinds could derail a post-Covid recovery.

Omicron variant could cause further supply chain disruption

03 December 2021

Looking ahead the new omicron variant presents a significant concern for manufacturers as it could further escalate supply chain disruption with global lockdowns. Read on for what the implications could be on the supply chain.

Missed opportunity from Chancellor to tackle acute challenges for manufacturers

02 November 2021

The resilience of UK manufacturing is evident in this month’s CIPS manufacturing PMI increasing for the first time in five months from 57.1 in September to 57.8 in October.

Will Government step in to help manufacturers navigate headwinds?

05 October 2021

Current headwinds, including supply chain disruption, material shortages, resource pressure and the most recent fuel crisis, have yet again hit the latest CIPS manufacturing PMI.

No manufacturers will be immune from supply chain disruption in 2021

06 September 2021

Supply chain disruption, material shortages and resource pressure hit the latest CIPS manufacturing PMI with another monthly fall from 60.4 in July, to a five-month low of 60.3 in August.

Supply chain issues and pingdemic compound manufacturing woes

03 August 2021

It’s not surprising to see a dip in the latest CIPS manufacturing PMI from 63.9 in June to 60.4 in July as supply chain issues across the sector and increased self-isolation for staff compound the challenges that manufacturers currently face.

Good conditions remain for manufacturers despite supply chain problems

02 July 2021

We expected to see a continuation of the strong growth we have seen in recent months in the latest CIPS Manufacturing PMI. The slight dip on the previous record month of 65.6 to 63.9 indicates that good conditions remain, and that consumer spending is driving activity. This trend is likely to continue until international travel restrictions are lifted and competition on pent up consumer savings increases.

UK CIPS Manufacturing PMI reaches record high of 65.6

02 June 2021

It’s great to see another increase in the latest CIPS Manufacturing PMI to a record high of 65.6 from 60.9; and reinforces the important role that UK manufacturing will play in the economic recovery this year.

Despite uncertainty, the UK is open for manufacturers

09 April 2021

Despite uncertainty and supply chain pressures, the latest CIPS Manufacturing PMI shows significant improvement increasing to a decade-high of 58.9 from 55.1.

Despite uncertainty, manufacturers need to invest in the future now

01 March 2021

After hitting a three-month low at the start of the year, the latest CIPS Manufacturing PMI signals slight improvement for manufacturers moving to 55.1 from 54.1.

Manufacturing takes a Brexit dip

01 February 2021

After a strong come back in the second half of last year following the unprecedented shock of the Covid-19 pandemic, manufacturers are now feeling the impact of Brexit and Lockdown 3.0.

Manufacturing PMI for October shows expansion for fifth consecutive month.

03 November 2020

The IHS Markit/CIPS UK Manufacturing PMI ended at 53.7 in October 2020, from a preliminary estimate of 53.3 and compared to September's final reading of 54.1.