Key Findings:

• Manufacturing PMI falls to 17-month low
• Business optimism at weakest level since
  November 2022
• Steeper drops in output, new orders and new
  export business

Comment:

Rob Dobson, Director at S&P Global Market Intelligence said:

“March proved to be another tough month for UK
manufacturers. Output contracted at the quickest pace
since October 2023, as new business growth fell at the
steepest rate for one-and-a-half years, suffering one of
its sharpest falls since the pandemic lockdown of 2020.

“Companies are being hit on several fronts. Many reported
that domestic market conditions are deteriorating,
costs are rising due to changes in the national minimum
wage and national insurance contributions, geopolitical
tensions are intensifying, and global trade faces potential
disruptions from tariffs.

“Although the impact on production volumes was
widespread across industry, it was again small
manufacturers that took the hardest knock.

“The outlook is also darkening, with overall business
optimism plunging to its lowest levels since late-2022.
Fears about current and future performance put
manufacturers on an increasingly cost cautious footing,
with employment, stock holdings and purchasing all
falling as companies looked to work leaner and protect
cash flow, margins and competitiveness. Many firms
are clearly hunkering down as they expect difficulties to
continue in the coming months.”