# UK factories suffer worst month since May 2020 as economy stumbles – PMI
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-01
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: UK Manufacturing Output and Orders Fall In August Amid
Meta Description: British manufacturing output and new orders drop significantly amidst rising inflation and recession fears at home and abroad. Find out more here.
URL: https://financedigest.com/uk-factories-suffer-worst-month-since-may-2020-as-economy-stumbles-pmihtml

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LONDON (Reuters) – British manufacturing output and new orders fell by the most in more than two years in August in the face of deepening uncertainty about surging inflation and the risk of recession at home and abroad, a survey showed on Thursday.

The S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) dropped to 47.3 from 52.1 in July although the final reading was less weak than a “flash” estimate of 46.0.

The headline figure and the survey’s measure of new business were both at their lowest since May 2020, when Britain was in the grip of its first coronavirus lockdown.

Jobs [growth virtually stalled and business](https://www.financedigest.com/uk-businesses-call-for-looser-immigration-rules-to-boost-growth.html "UK businesses call for looser immigration rules to boost growth") confidence fell.

S&P Global said orders from [key markets such as the United States](https://www.financedigest.com/inflation-in-key-german-states-eases-for-second-month.html "Inflation in key German states eases for second month"), the European Union and China were down, compounding problems from port congestion and supply chains that date from the coronavirus pandemic, and complications related to Brexit.

But there were some potentially comforting signs for the Bank of England, which has raised interest rates six [times since](https://www.financedigest.com/soccer-arsenal-reach-womens-champions-league-semis-for-first-time-since-2013.html "Soccer-Arsenal reach Women’s Champions League semis for first time since 2013") December to try to stop the surge in inflation from becoming a long-term problem for Britain’s economy.

The [rise in input costs](https://www.financedigest.com/suedzucker-quarterly-profits-surge-73-5-despite-cost-rise.html "Suedzucker quarterly profits surge 73.5% despite cost rise") for factories – such as containers, electronics, energy, packaging, raw materials and transportation – remained above average but it was the weakest increase since November 2020.

[Selling price](https://www.financedigest.com/3-tricks-to-get-a-better-price-when-selling-your-car.html "3 Tricks To Get a Better Price When Selling Your Car") inflation also eased off, according to the survey, which was conducted between Aug. 12 and Aug. 25.

(Reporting by William Schomberg; Editing by Hugh Lawson)


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