Business

Manufacturing sector endures month 'in doldrums'

March was a subdued month for the UK's manufacturers
March was a subdued month for the UK's manufacturers March was a subdued month for the UK's manufacturers

THE UK's manufacturing sector remained subdued in March, according to the latest data from the Purchasing Managers' Index (PMI) produced by Markit.

The opening quarter of 2016 saw the sector register one of its weakest performances during the past three years.

The closely watched index posted 51 in March, only a couple of ticks higher than February’s 34-month low of 50.8.

March saw production rise at a pace unchanged from February’s seven-month low.

The intermediate goods sector recorded the steepest expansions of both production and new business during the latest survey month. The performance of the consumer goods sector also remained mildly positive.

Output of consumer products rose moderately following a solid rebound in new order volumes from February’s contraction. The trend in investment goods output growth continued to slow sharply, as new work received fell for the second straight month.

Levels of new export business decreased for the third straight month in March. The latest decline was centred on the investment goods sector, as consumer and intermediate goods producers both reported modest gains.

Manufacturing employment declined for the third consecutive month in March. Reflecting the trend in new business, the sharpest job cuts were initiated in the investment goods sector. In contrast, consumer and intermediate goods producers both raised their staffing levels.

Markit senior economist Rob Dobson said: “The UK manufacturing sector remained in the doldrums during the opening quarter of the year. Although March saw modest improvements in the trends for production and new orders, industry is still hovering close to the stagnation mark and will struggle to make a meaningful contribution to the next set of GDP growth figures.

Graeme MacLaughlin, relationship director at Barclays in Northern Ireland said the industry "continues to struggle with growth hard-earned and export performance an ongoing hindrance".

" With slowing global growth and uncertainty over the outcome of the forthcoming EU referendum conspiring to frustrate the sector, the focus of manufacturers’ attention should increasingly be on investing in skills and innovation as they strive to win vital new business," he added.