Manufacturing sector shrunk further last month amid the Red Sea crisis

The UK’s manufacturing sector hit a down turn last month due to the Red Sea crisis causing disruption on shipments.

In April the S&P Global/CIPS UK manufacturing PMI survey fell to 49.1, compared to a high of 50.3 the month before.

Manufacturing companies have said they are being impacted with a longer delivery time as most shipping companies are travelling thousands of more miles around South Africa.

This is to avoid being targeted the Iranian backed Houthis militants who are trying to hit ships with rockets and drones.

Rob Dobson, director at S&P Global Market Intelligence, said, “The UK manufacturing sector suffered a renewed downturn in April, as output and new orders contracted following short-lived rebounds in March.

“The sector is still besieged by weak market confidence, client destocking and disruptions caused by the ongoing Red Sea crisis, all of which are contributing to reduced inflows of new work from domestic and overseas customers, with specific reports of difficulty securing new contract wins from Europe, the US and Asia.

“The downturn is also sustaining cost caution at manufacturers, leading to lower employment, stock holdings and cutbacks in purchasing activity.”

Caroline Litchfield, partner and head of manufacturing and supply chain sector at Brabners, said, “Hopes of a recovery in the UK’s manufacturing sector will need to be put on ice for now, as March’s lift in activity proved an anomaly.

“Indeed, supply-side barriers including delays to raw material deliveries and high input cost rumble on.

“And while domestic demand has picked up, geopolitical instability has fractured supply chains globally – most notably with disruptions in the Red Sea causing congestion at Mediterranean ports – to restrict international orders.”