Make UK Comment on today’s PMI figures

Fhaheen Khan, Senior Economist Make UK, the manufacturers’ organisation said:

“Today’s data indicates manufacturing production has hit the brakes as slowing demand takes hold of business activity. It is no longer just high inflation that is eroding spending power, but combined with higher interest rates depleting our willingness to spend has made for an unpalatable cocktail.

“Manufacturers are now acting by cutting jobs and investment as the backlog of work starts to dry leading to an inevitable downturn in economic activity soon. Policy makers and rate setters will need to be wary of the cost of higher unemployment given prices remain elevated for many consumers and the loss of incomes will hurt many if we take this too far.”