S&P Global's latest Purchasing Managers' Index (PMI) shows that the downturn in the United Kingdom's Manufacturing sector is deepening by the end of 2024. The seasonally adjusted UK Manufacturing PMI fell to a nearly 11-month low of 47 in December, down from 48 in November and below the preliminary figure of 47.3. Over the past three months, the PMI has consistently been below the neutral level of 50.

In December, the contraction of output, new orders, and employment in the United Kingdom's Manufacturing sector accelerated. Clients are depleting inventories, market confidence is low, and operational restructuring in response to upcoming legislative changes is impacting output and demand, further strengthening the ongoing efforts to achieve cost-effectiveness. As the economic outlook weakens, business optimism has dropped to a two-year low.