Manufacturing sector continues recovery in September but growth eases

Last month the automotive industry in the UK resumed its turnaround, but "killed" the growth pace marginally slowed, as new estimates show.

A score of 54.1 for the September, from a two-and-a-half year height of 55.2 for August, was reported by the IHS Markit / CIPS manufacturing purchasing managers' index (PMI).

Anything over 50 is known as a business development.

The reading was not quite what the analyst predicted, with economists forecasting that 54.3 a month would be needed.

"September witnessed the continued recovery of the UK output from the sharp decline of Covid 19," said Rob Dobson, director of IHS Markit.

"While the growth rates in production and new orders lost some of the growth in August, they stayed steady and above the long-term average of the survey."

The report shows that the sector contracted for 4 consecutive months, the longest development streak since the beginning of 2019.

In September, growth in production was related to increases in new employment, reopening of enterprises and the return to work of increased workers.

Based on the strengthened consumer demand and expanded export orders, new business grew for the third consecutive month.

But for the eight straight months, job cuts were announced, as the government reached the end of the furlough system.

"The catalyst for this revival lies in the opening of postponed ventures and the influx of citizens into work, but overall the job condition went drastically dim. Duncan Brock, Group director at the Chartered College of Procurement & Supply, said.

"Some businesses continued to utilize the Furlough System to maintain their employees, however this month we have a massive redundancies as wages declined for the eighth month in a row to the third quarter.

"The glass industry stayed half-full amid these challenges and hope was retained for the year ahead."