UK manufacturing job losses are at highest level in seven years
The UK manufacturing industry cut jobs at their highest ever rate in November, more than any other month in the past seven years. According to data from HIS Markit/CIPS Purchasing Manager’ Index (PMI) survey the rate of job losses in the manufacturing industry hit the highest level since September 2012.
The survey found that uncertainty around Brexit meant that companies were attempting to cut cost and redundancies were made. The manufacturing sector was hit badly because many companies ordered in supplies before the original October 31st Brexit deadline. This meant that companies were still using these supplies and are not purchasing new ones. Therefore, manufacturers have scaled back production as order intakes reduced and less staff were needed.
The HIS Markit/CIPS Purchasing Managers’ Index for manufacturing fell to 48.9 in November anything below 50 suggests that a large amount of business are decreasing in output. It is this decrease in activity that has resulted in a large amount of job losses.
Chris Hill, Hawsons Partner, commented: “Since the Conservatives won the recent General Election with such a large majority there is now much more clarity on Brexit as it now looks extremely likely that we will leave on or before January 31st 2020. This is great news for manufacturers as this offers more stability for the manufacturing industry as companies will no longer be stockpiling supplies”.
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