Factories prolonged slump eases amid the Chancellor’s £4.5 billion funding package

The prolonged slump for British factories is turning a corner as manufacturing downturn in November eased.

The S&P Global/CIPS UK manufacturing PMI survey said that in October it rose from 44.8 to 47.2 last month.

This is the highest reading since April this year which comes after the Chancellor announced a multi-billion pound funding package for manufacturing sectors.

Under the Government’s Advanced Manufacturing Plan, aerospace and car making companies along with clean energy firms will benefit from a £4.5 billion fund.

The £4.5 billion fund that Jeremy Hunt announced is only for “strategic” manufacturing sectors.

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Rob Dobson, director at S&P Global Market Intelligence, said: “Although the downturn in production eased sharply in November, the latest PMI report brings little festive cheer when the finer details are considered.

“Manufacturers are preparing for tough times ahead, with their continued caution leading to cutbacks in staffing, inventories and purchasing.”

Dr John Glen, chief economist at the Chartered Institute of Procurement & Supply (Cips), said: “Crawling upwards towards the no-change mark, the sector displayed some resilience as rates of contraction in output and new orders eased, but overall conditions remain softer than hoped for as we move towards the end of 2023.”

Cara Haffey, manufacturing and automotive lead for PwC UK, said: “With much of the UK experiencing a somewhat sudden cold snap this week, colder temperatures and risks of snow and ice mean that adequate planning for supply chain resilience is vital for manufacturers to have minimal disruption to their operations throughout the winter period.”