UK manufacturing sector growth has slowed sharply this month, amid “severe supply-chain disruption”, a closely watched survey shows.
The survey, published yesterday by the Chartered Institute of Procurement & Supply and IHS Markit, shows a slowdown in growth of both services and manufacturing activity to the weakest rates in seven months. CIPS and IHS Markit said the latest data “signalled a further loss of growth momentum in the UK private sector”. And they flagged inflationary pressures, with companies raising prices charged at the fastest pace since comparable records began in July 1996.
Their latest flash UK composite output index, covering services and manufacturing, has fallen further to 54.1 this month, from a final August reading of 54.8, with 50 being the no-change mark. The rate of job creation “remained elevated”.
Chris Williamson, at IHS Markit, said: “The data will add to worries that the UK economy is heading towards a bout of ‘stagflation’, with growth continuing to trend lower while prices surge ever higher. The survey points to business activity being increasingly constrained by shortages of materials and labour, most notably in the manufacturing sector but also in some services firms. A lack of staff and components were especially widely cited as causing falls in output within the food, drink and vehicle manufacturing sectors.”