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Glynn Bellamy, UK head of industrial products for accountants KPMG, said:
Manufacturing is facing the perfect storm of softening underlying demand exacerbated by the continuing unwind of inventory levels built up to counter the supply chain disruption experienced post Covid-19.
The PMI sank to a 39-month low as output and new orders contracted at rates rarely seen outside of major periods of economic stress such as the global financial crisis of 2008/09 and the pandemic lockdowns.
Manufacturers reported a weakening economic backdrop as demand is hit by rising interest rates, the cost-of-living crisis, export losses and concerns about the market outlook. While this is being felt across the manufacturing industry, business-to-business companies are especially hard hit. Intermediate goods producers saw the steepest drops in output, new orders and employment as a result.
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