Commenting on the latest IHS Markit manufacturing PMI survey for the UK, Tom Lawton, BDO’s Head of Manufacturing said:
‘Despite a slight easing in this month’s index, it is still deep in negative territory and points to a continued deterioration in operating conditions. The fact that output has fallen off a cliff should not come as a huge surprise. The biggest worry, however, is the outlook for new orders. Even as more manufacturers come back online as the lockdown eases, unless and until the order books fill up, plants are unlikely to be operating at anything near full capacity.
‘While the various support packages are helping to keep some manufacturers afloat, manufacturing employment fell for the fourth successive month in May and this reduction in headcount is, sadly, likely to continue.
‘Many supplier firms will be reliant on the financial health of their major customers. As we have seen today, the calls for the Government to step in and provide direct financial support to some of the country’s largest manufacturers are getting louder and more urgent.’
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