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UK Manufacturing PMI Contracts in April, Showing Output and New Orders Shrank

The latest survey results from S&P Global/CIPS have shown that British factory output and new orders contracted in the first quarter of 2023. Although manufacturers were more optimistic, production costs rose at their weakest pace since May 2020.

The survey revealed that the UK Manufacturing Purchasing Managers’ Index (PMI) dropped to a three-month low of 47.8 in April from 47.9 in March. This indicates a contraction in business and is below the 50 mark. The figure is even higher than the preliminary figure of 46.6.

According to the director of S&P Global Market Intelligence, “Output and new orders have shrunk because manufacturers feel the impact of uncertainty on customers, including reducing inventory and tighter cost control.”

Although manufacturers are optimistic, the PMI figures suggest that the sector will continue to face challenges in the coming months.

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