UK Manufacturing Takes a Dip in January
It was a slow start for factories across Britain this January, with the S&P Global UK Manufacturing PMI sliding to 48.3 from December’s 47. Less than the magic 50‑line that signals growth, the figure shows output hasn’t bounced back yet.
Higher Costs Keep the Hammer Down
- Manufacturers warn that rising costs and the Chancellor’s autumn tax hikes are adding fresh weight to the ledger.
- Rob Dobson, S&P Global Market Intelligence director, notes that big‑box firms have fared a bit better—seeing output and new orders recover in January—while smaller businesses are still stuck.
- He adds, “However, there seems little scope for any imminent improvement for the sector as a whole.”
Tax Increases and Wage Hikes Loom
Upcoming charges to watch:
The rise in employers’ national insurance contributions and the minimum wage is set to impact businesses in April. Those extra costs might squeeze profit margins tighter.
Market Sentiment and Price Pressures
- Business optimism has barely lifted from December’s two‑year low.
- Input‑price inflation has spiked to a two‑year high, placing additional strain on manufacturing.
In short, the blend of falling output, heavy cost pressures, and a looming modern wage hike creates a recipe for continued caution in the UK manufacturing scene.
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