The double whammy of the Covid-19 pandemic and Brexit have hit British manufacturers. The UK’s output growth in February was the slowest since May last year. The IHS Markit/CPIS Manufacturing Purchasing Manager’s Index dropped to 50.5 in February from 50.7 in January, the lowest output growth since May 2020. However, the larger manufacturing PMI came in at a two-month high of 55.1, against 54.1 in January. A score above 50 means growth in a sector, hence it can be called growth for the ninth month in a row.
IHS Markit said that companies reported better demand from markets like US, Asia, Scandinavia but also said that the impact of Covid-19 and Brexit-related complications and shipping issues affected growth in export order.