UK manufacturing contracts in May as coronavirus slump continues - PMI data

UK manufacturing remains in its worst slump since records began nearly 30 years ago as coronavirus kept the country in lockdown .

The closely watched UK manufacturing purchasing manager’s index came in at 40.7 for May, only marginally better than the 32.6 recorded in April, IHS Markit data showed.

Output, new orders and employment contracted at some of the fastest rates during the 28-year survey's history.

A PMI reading below 50 represents a contracting market, with anything over 50 indicating a growing market economy.

The manufacturing PMI recorded for March was 47.8.

The reading comes as Prime Minister Boris Johnson is under pressure to get the economy moving again.

While the service sector, encompassing hotels and restaurants, has potentially been hit the hardest during the crisis, many factories and warehouses making products for use here in Britain and overseas have been forced to shut to comply with lockdown restrictions.

Duncan Brock, director at the Chartered Institute of Procurement & Supply, said: “Though less severe than the wrecking losses of last month, continued supply chain disruptions resulted in another strong contraction in the manufacturing sector as output fell at its fourth-fastest rate in the near 30-year survey history."

Rob Dobson, director at IHS Markit, added: "Uncertainty about how long the COVID-19 restrictions may be in place for, weak demand and Brexit worries all suggest the UK is set for a drawn-out economic recovery.

"This will make the “new normal” one of the toughest recovery environments many manufacturers will ever have to face."