Manufacturing job losses in the UK have accelerated dramatically in February, marking the fastest pace since 2020. The S&P Global UK manufacturing PMI shows a decline to 46.9 from 48.3, indicating contraction. Factors such as inflation driven by tax increases on employers' national insurance and weak performance in major trading partners like France and Germany contribute to this downturn. Experts warn that export weaknesses and the uncertainty regarding tariffs may prolong these challenges, although a recovery in the domestic economy might offer some respite later in the year.
Rob Dobson, director at S&P Global Market Intelligence, said the cost rises is "driving up inflation fears and intensifying the downward trend in staff headcounts."
Tom Pugh, an economist at consultancy RSM, said, "A combination of weak growth in our major trading partners such as France and Germany, combined with uncertainty around US tariffs, and therefore a potential global trade war, continues to weigh heavily on manufacturing firms."
Pugh added that export weakness is "clearly hampering the manufacturing sector, and given the likelihood of further tariffs and trade disruption, it doesn't look like this will improve any time soon."
"The good news is that the domestic economy should recover through this year, helping to support some increase in activity."
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