By Aysu Bicer
LONDON (AA) - Confidence in the UK manufacturing sector plunged to its lowest level in nine months, marking the steepest decline since the start of the COVID-19 pandemic, according to data from S&P Global released on Tuesday.
Although the sector’s output and new orders have slowed, S&P’s UK Manufacturing Purchasing Managers' Index (PMI) remained in growth territory, registering 51.5 for September. This is a dip from August’s 26-month high of 52.5, indicating that while the sector is still expanding, the pace of growth has significantly weakened.
The decline in confidence comes as factory leaders voice growing concerns over the upcoming autumn budget and geopolitical instability linked to the ongoing Middle East crisis.
S&P Global's report shows that many businesses in the sector have adopted a "wait-and-see approach," delaying key decisions as they brace for the potential impact of Chancellor Rachel Reeves's first budget.
Anticipation of stricter fiscal measures has contributed to a slowdown in both production and new business, with companies hesitant to invest amid economic uncertainty.
This data aligns with a separate warning from the Institute of Directors, which also highlighted increased pessimism among business leaders, further attributing it to concerns over Reeves’s anticipated budget.