PwC comments on February's S&P Global UK Manufacturing PMI

Cara Haffey, Leader of Industry for Industrials and Services at PwC UK said:

"A fourth month of falling output led the manufacturing sector to post a 14-month low of 46.9 in February, the fifth consecutive month that the reading has signalled a sector contraction. The PMI notes that the domestic market is particularly struggling with rising cost pressures and an increased focus of tightening spending, in addition to increased employer National Insurance contributions looming on the horizon.

“This is resulting in a very clear impact on the labour market. The PMI reports the latest data signals the steepest cut to employment is ongoing in the sector since May 2020, due to weak demand, cost control and upcoming increases to minimum wage and National Insurance policy. This is an issue which is front of mind for manufacturers, as employment costs were ranked as the highest risk to growth in PwC and Make UK’s 2025 Executive Survey. 

“We know that clients are looking for further clarity and certainty in light of challenging market conditions and disruptive geopolitics.The UK government can help by firming up on the investment agenda for the priority sector of Advanced Manufacturing and what that means for the various regions of the UK with specific manufacturing strengths; alongside continuing to build out long-term clarity on the Industrial Strategy.”