For May
Provided by: Chartered Institute of Purchasing and Supply (CIPS)
(subcr. req')

The UK manufacturing PMI rose to 45.4 in April, adding to signs that the UK recession my be past its worst phase. Though the figure remains below 50, which is the level separating growth from contraction, May's figure is the best in a year, and was better than anticipated. The central bank, which has put rates at a record low of 0.50% and is currently conducting a 125 billion pound bond-buying plan, will remain cautious about optimism that the economy is rebounding.  

For April
Provided by: Chartered Institute of Purchasing and Supply (CIPS)
(subcr. req')

The UK manufacturing PMI rose to 42.9 in April from an upwardly revised 39.5. That reading beat forecasts, signifying that the contraction in the sector moderated more than expected. Therefore, even though the sector shrank for the thirteenth consecutive month, the data could be a sign that manufacturing could be bottoming out. The index was at a record low of 34.9 in February. 

For March
Provided by: Chartered Institute of Purchasing and Supply (CIPS)
(subcr. req')

The UK manufacturing sector, though still contracting, significantly slowed the pace of that contraction in March. The PMI index rose from 34.7 to 29.1, much higher than expectations. In February the index was at an all-time low, and this rebound can give the central bank some confidence that its recent efforts to stimulate the economy may be paying off. 

For February
Provided by: Chartered Institute of Purchasing and Supply (CIPS)
(subcr. req')

The UK manufacturing sector shrank for a 10th straight month, falling to 34.7 in February, from 35.8 the previous month. It's the weakest reading since the index reached a 17-year low of 34.5 in November. Employment and production contracted at the fastest rate in the survey's history.  

For January
Provided by: Chartered Institute of Purchasing and Supply (CIPS)
(subcr. req')

Manufacturing in the UK contracted for an 8th straight month, but the PMI did surprise forecasts and increase to 35.8 for the January period, compared to 34.9 in December. Still, despite the better than expected result manufacturing remains mired near record lows and is expected to continue to show sharp contractions for some time to come. The employment sub-index fell at its fastest pace on records as firms cut back payrolls to try and deal with the country's recession. Price pressures continued to ease. The Bank of England's rate stands at 1.5%, following 350 basis points of cuts since October. Expectations are for another interest rate cut this week, though with rates going down to as low as 1%, the bank will be running our of room to use the interest rate as a tool if rates get too low. 

For December
Provided by: Chartered Institute of Purchasing and Supply (CIPS)
(subcr. req')

The index of activity in the UK manufacturing sector, saw a slight increase to 34.9 from November's record low of 34.5, though any figure below 50 implies contraction. It was the eight month in a row that the sector shrank, and reflects the difficulties facing factories as retails cut back on orders in the face of weaker demand from both at home and abroad. The production, new orders and employment sub-gauges remain near survey-record lows as the ongoing crisis in the auto, construction, financial and retail markets drain demand. Key UK trading partners like the Euro-zone and US are also facing recessions and even though the Pound has depreciated making UK goods cheaper abroad, the fall in demand from abroad has wiped out that advantage. Still, today's data beat forecasts of a further drop in the index which may imply that the rate of contraction may be slowing. Europe's report showed manufacturing continue to sink to lower levels. The Bank of England meets next week and expectations are for a 50 basis point cut in order to stimulate the economy.

For November
Provided by: Chartered Institute of Purchasing and Supply (CIPS) (subcr. req')

The manufacturing PMI in the UK fell to 34.4 in November, a much bigger contraction than expected by forecasts. That puts the index to the lowest level since the series began 16 years ago in 1992. The weak result hurt UK stocks, pressured the Pound, and increased speculation that the Bank of England will act even more aggressively in its interest rate meeting on Thursday. Expectations are for a 100 basis point cut to 2% from 3%, but with the economy reeling, policy members may take even bolder action. The main drag on the index was a steep fall in new orders, as that sub gauge hit an all-time low of 29.7, down from 37 the previous month. With manufacturing activity so poor, it will add pressure to an economy already reeling from weaker consumer spending, a deteriorating housing market, weak stocks, and the turmoil in the financial sector. Inflation measures were down, which should give the BOE more leeway to cut rates if necessary.

The October's measure of manufacturing activity in the UK (41.5) showed contraction for the 6th consecutive month, although the pace was slower than in September when the index read 41.2 after an upward revision. Expectations were for the index to fall further to 40.0.

The slowdown continues to be broad and reflects recessionary levels but has some welcoming news for the central bank. One positive from the release is the significant easing in the prices paid index, which dropped from 71.8 to 55.6. The BoE is set to cut rates this week, and with prices easing they might slash more than the forecasted 50 points to 4.00%.

For September
Provided by Chartered Institute of Purchasing and Supply (subcr. req')

UK manufacturing contracted much more sharply than expected in September. The manufacturing PMI fell to 41.0 from 45.9 in August. That's the lowest reading since the series began in 1992. Order books and the employment indexes fell to record lows. It's a very bleak report reflecting the conditions in the UK right now, with domestic demand faltering and the price of credit rising. With the financial crisis intensifying at the end of the month the Bank of England may have to cut rates sooner than it may want, as inflation still remains a concern.

The NY open saw the Pound fall below 1.7750 against the Dollar, a decline of 900 pips in the last 5 sessions.