| CATEGORY: NEWS AND ANNOUNCEMENTS |
Manufacturers have worst month ever |
|
By Lee Wild
|
|
Mon 01 Dec 2008
|
LONDON (SHARECAST) - Britain’s manufacturing sector “has fallen off a large cliff”, with activity in November hitting a record low after shrinking for the seventh month in a row.
The Chartered Institute of Purchasing & Supply manufacturing purchasing managers' index (PMI) came in at 34.4, the weakest read since the series began in January 1992.
The drop from a downwardly revised 40.7 in October was the largest decline on record, beating the previous worst of 40.3. Anything below 50 indicates contraction.
Output, new orders, and backlogs of work all registered their worst ever figures, while unemployment in the sector fell as fast as it has done in almost 27 years.
"November saw the manufacturing sector crash at a record rate as the headline index fell to its lowest historical reading,” said CIPS director Roy Ayliffe. “This unparalleled blow is further heightened as the PMI readings have collapsed to new lows for three consecutive months now."
Howard Archer, chief UK economist at IHS Global Insight, called the survey “absolutely terrible”, and believes sharply diminishing inflationary pressures pave the way for the Bank of England to slash interest rates by another 1% to just 2% on Thursday.
The output prices index sank to a 2½ year low last month, suggesting further pressure on manufacturers' pricing power, while falling commodity prices sent input prices down the most in over six years.
|
|
| |
|
 |
Archived Stories |
 |
|
Front Page Stories |
|
|
