The UK’s manufacturing sector continued to deteriorate in October, according to survey data on Wednesday.

The S&P Global/CIPS manufacturing purchasing managers’ index posted 44.8 points in October, edging up from 44.3 in September. However, the figure was worse than the previous flash estimate of 45.2.

The sub-50 reading indicates the sector remains in contraction, though at a marginally slower pace compared to the prior month.

According to S&P Global, all five sub-components of the survey signalled a deterioration in the sector.

‘Alongside lower new orders, output and employment, stocks of purchases also declined and suppliers’ delivery times improved (traditionally a sign of weak demand),’ S&P Global said.

Respondents cited tough market conditions on the domestic front and overseas, with new business contracting for the seventh consecutive month. Exports fell for the 21st month in a row, which was particularly attributable to weaker inflows of new work from Europe, mainland China and Brazil.

Manufacturers became more cautious as a result of the downturns in production and new work intakes. Purchasing activity fell, and factories continued to shed jobs.

However, manufacturers maintained a positive outlook overall, though business optimism retreated to a ten-month low. 54% of the survey respondents expected output to rise in the next 12 months, while 36% expect ‘broad stagnation’, with the remainder expecting activity to contract.

‘With another contraction in manufacturing activity, any sustained optimism about the next 12 months amongst manufacturing companies was likely to be as a result of hope over the evidence,’ considered John Glen, chief economist at the Chartered Institute of Procurement & Supply.

‘That’s because the UK economy remains in poor shape, and subsequently manufacturing production is experiencing its most sustained downturn since the recession of 2008/9.’

The PMI is complied by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 650 manufacturers. Survey responses are collected in the second half of each month.

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