LONDON (dpa-AFX) - The UK manufacturing sector growth moderated in March as rising uncertainty around geopolitical tensions and direction of domestic economic policy led to a scaling back of output, final survey results from S&P Global showed Wednesday.
The final manufacturing Purchasing Managers' Index registered 50.0 in March, down from 51.7 in February. The score was also below the flash estimate of 51.4.
Nonetheless, the index has remained above the neutral 50.0 mark for the fifth straight month.
Manufacturing output dropped for the first time in six months. Business optimism regarding production outlook hit its lowest since September 2025.
Further, new orders grew for the fourth straight month but the pace of growth weakened. That said, new export business continued its recent upturn.
S&P Global Market Intelligence Director Rob Dobson said the drop in production is currently more of a supply issue than one caused by an outright downturn in demand.
However, it is hard to see how demand can prove resilient in the face of current high energy prices and economic uncertainty unless there is a swift resolution to the war in the Middle East, Dobson noted.
The survey showed that the outbreak of war in the Middle East and closure of the Strait of Hormuz had a marked impact on supply chains and purchasing costs. Average vendor delivery times lengthened to the greatest extent in over four-and-a-half years.
Average input costs increased the most since October 2022, mainly reflecting spikes in energy prices. In turn, selling prices logged a marked increase.
Pressures on margins led manufacturers to reduce hiring. Employment decreased at the fastest rate since September 2025, the survey showed.
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