Manufacturing production has shrunk for seven months in a straight row and factories are seeing their largest fall in exports since the start of the Covid pandemic.
Demand from Europe, China and the US has slumped amid the US President’s sweeping tariffs, according to the S&P Global UK manufacturing PMI survey.
The PMI survey is closely monitored by economists which showed a reading of 45.4 in April, up from 44.9 in March, a reading above 50 indicates there is growth.
Rob Dobson, director at S&P Global Market Intelligence, said, “Surveyed manufacturers noted that US tariff announcements were having a noticeable impact on global markets as trading partners adapt to increased trade volatility.”
Dobson added, “The start of the second quarter saw UK manufacturing buffeted by adverse global market conditions, rising cost pressures, deteriorating supply chains and increased trade uncertainty.”
Fhaheen Khan, senior economist at Make UK, said, “While actual changes in trade have been limited, the unpredictability, particularly around US tariff policy, is doing significant damage and paralysing decision makers.
“Many firms are delaying major investment decisions until greater clarity emerges, whilst being forced in the meantime to cut costs through redundancies while pushing through price increases.”
