Jobs blow as factory slump takes its toll
MANUFACtUReRS shed jobs last month at the fastest rate for more than seven years amid ‘ growing paralysis’ ahead of the General election, according to a report.
the Purchasing Managers Index (PMI), a closely watched industry health-check, warned that manufacturers had been hit by a ‘lethal cocktail’ of challenges, as a slowdown in the global economy combined with domestic pressures, including uncertainty over Brexit.
the result has been a deepening malaise at factories as output, new orders and employment all fell, according to the analysis from IHS Markit and the Chartered Institute of Procurement And Supply.
Companies scaled back production as orders fell for the seventh consecutive month, reflecting tougher conditions in the UK and oversees.
the decline in export orders was one of the steepest registered over the past seven years.
these factors – compounded by a ‘fresh injection of uncertainty’ since the election was called for December 12 – have resulted in factories cutting more jobs to save money.
In fact, last month saw manufacturing employment fall for the eighth consecutive month, with the pace of job losses the steepest since September 2012.
the sector registered a ‘ PMI’ score of 48.9 in November, lower than its 49.6 score in october. Anything below 50 means that the sector is contracting.