British exports have been slowed by the global economic slowdown, forcing manufacturers to cut jobs and prices last month.
Sluggish demand from outside the UK resulted in British manufacturing registering one of its weakest performances for three years, according to the respected Markit survey.
Chris Williamson, chief economist at Markit, said: “The data suggest manufacturing grew by only around 0.2% in the first quarter, acting as a drag on the wider economy.”
Rob Dobson, senior economist at Markit commented that this was close to the stagnation mark and that manufacturing will struggle to contribute to the economy’s growth in the near future.
The picture in the eurozone was also muted, although activity in China expanded in March. Much of the global economic slowdown has resulted from deceleration in China, so growth there could boost manufacturing and industry elsewhere.
As new export business continued to decline, manufacturers had to rely increasingly on the domestic market for new business. A pick-up in construction has helped certain industries such as chemicals, rubber, electronics and plastics.
Employment in the sector fell for the third consecutive month.
Manufacturers’ organisation EEF said the latest subdued report was surprising as companies have been dealing with weak global demand and a low oil price for more than a year.
