The UK manufacturing sector is grappling with its most severe job cuts in four years, as a sharp decline in activity signals deepening troubles for the industry. According to the latest S&P Global UK Manufacturing PMI survey, the sector’s index dropped to 46.9 in February, down from 48.3 in January, marking a 14-month low. This decline indicates contraction for the fifth consecutive month, further fueling concerns over the sector’s stability.
Rising costs, driven by higher taxes and inflation, have been increasing pressure on manufacturers, forcing many to cut jobs, reduce working hours, and freeze hiring. Factory expenses have surged following tax hikes introduced in the October Budget, with manufacturers warning that these rising costs are squeezing profitability and leading to reduced output.
