UK manufactures have been hit by job losses, worsening market conditions and cost inflation, according to a new report.

The Chartered Institute of Puchasing and Supply (CIPS)/Markit Report on Manufacturing revealed that its employment index fell to a reading of 43.3 as headcount fell by its greatest margin since the final quarter of 2001. The seasonally adjusted CIPS/Markit Purchasing Managers’ Index® (PMI®) fell to 44.3 in July, its lowest level since December 1998, while the level of new work placed with UK manufacturers contracted at the fastest rate in nearly a decade to a reading of 40.5.

Input cost inflation also rose at a record rate as the seasonally adjusted Input Prices Index posted a reading of 63.1.

Roy Ayliffe, director of professional practice at the Chartered Institute of Purchasing and Supply, said: “Purchasing Managers reported a third consecutive month of contraction in the UK manufacturing sector in July, as the combined forces of worsening market conditions and record cost inflation continued their relentless onslaught.”


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