UK manufacturing falls to six-month low as JLR shutdown disrupts supply chains
British manufacturing recorded its steepest decline in six months, with the suspension of production at Jaguar Land Rover (JLR) plants intensifying pressures already weighing on the sector.
Data from S&P Global showed the manufacturing purchasing managers’ index (PMI) fell to 46.2 in September, down from 47 in August, confirming earlier flash estimates and keeping the sector well below the 50-mark that separates growth from contraction.
The figures pointed to the largest drop in both new orders and output since March, underlining the growing challenges for UK industry.
JLR shutdown adds pressure to factory output
JLR temporarily closed its UK facilities after a cyberattack disrupted operations across the carmaker’s supply chain.
The shutdown rippled through manufacturing networks, affecting suppliers reliant on consistent orders from the automotive giant.
The timing compounded existing pressures linked to higher energy bills and rising labour costs.
While JLR announced it would resume some production this week, the company is also seeking a £2 billion loan, with the UK government stepping in with a £1.5 billion loan guarantee to support its financial stability.
Orders and exports see a sharp decline
The PMI survey highlighted that weak demand was central to the latest downturn.
New business intakes fell sharply, with overseas orders posting their fastest decline since April, when the US imposed sweeping tariffs on global exports.
The lack of fresh export work coincided with a broader slump in sentiment, leaving many firms unable to maintain previous levels of output.
According to S&P Global, the cost environment added further strain, as tax changes and persistent high labour costs eroded profit margins.
Employment in factories also dropped for an 11th consecutive month, reflecting sustained pressure across the sector.
Cyberattack impact on the auto supply chain
Companies connected to the automotive supply chain were among the hardest hit following JLR’s suspension of operations.
The incident demonstrated the vulnerability of UK manufacturing to cyber threats, with even temporary shutdowns creating bottlenecks in production.
Industry analysts pointed out that supply chain exposure to digital risks has become a recurring issue, with recent cyber incidents adding to delays and output losses in critical industries.
The JLR disruption provided a fresh example of how cyberattacks can magnify existing challenges in sectors already facing cost inflation and weak global demand.
Manufacturing outlook remains weak
Despite expectations that production at JLR will restart in stages, the wider manufacturing sector continues to face headwinds.
Weaker international demand, combined with trade barriers and the high-cost domestic environment, has made recovery difficult.
Factories continue to report limited confidence in new investment or hiring, with data confirming persistent declines in both orders and employment.
While government support for major industrial players like JLR provides temporary relief, the PMI figures signal ongoing weakness across British manufacturing as the year progresses.
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UK manufacturing falls to six-month low as JLR shutdown disrupts supply chains
British manufacturing recorded its steepest decline in six months, with the suspension of production at Jaguar Land Rover (JLR) plants intensifying pressures already weighing on the sector.
Data from S&P Global showed the manufacturing purchasing managers’ index (PMI) fell to 46.2 in September, down from 47 in August, confirming earlier flash estimates and keeping the sector well below the 50-mark that separates growth from contraction.
The figures pointed to the largest drop in both new orders and output since March, underlining the growing challenges for UK industry.
JLR shutdown adds pressure to factory output
JLR temporarily closed its UK facilities after a cyberattack disrupted operations across the carmaker’s supply chain.
The shutdown rippled through manufacturing networks, affecting suppliers reliant on consistent orders from the automotive giant.
The timing compounded existing pressures linked to higher energy bills and rising labour costs.
While JLR announced it would resume some production this week, the company is also seeking a £2 billion loan, with the UK government stepping in with a £1.5 billion loan guarantee to support its financial stability.
Orders and exports see a sharp decline
The PMI survey highlighted that weak demand was central to the latest downturn.
New business intakes fell sharply, with overseas orders posting their fastest decline since April, when the US imposed sweeping tariffs on global exports.
The lack of fresh export work coincided with a broader slump in sentiment, leaving many firms unable to maintain previous levels of output.
According to S&P Global, the cost environment added further strain, as tax changes and persistent high labour costs eroded profit margins.
Employment in factories also dropped for an 11th consecutive month, reflecting sustained pressure across the sector.
Cyberattack impact on the auto supply chain
Companies connected to the automotive supply chain were among the hardest hit following JLR’s suspension of operations.
The incident demonstrated the vulnerability of UK manufacturing to cyber threats, with even temporary shutdowns creating bottlenecks in production.
Industry analysts pointed out that supply chain exposure to digital risks has become a recurring issue, with recent cyber incidents adding to delays and output losses in critical industries.
The JLR disruption provided a fresh example of how cyberattacks can magnify existing challenges in sectors already facing cost inflation and weak global demand.
Manufacturing outlook remains weak
Despite expectations that production at JLR will restart in stages, the wider manufacturing sector continues to face headwinds.
Weaker international demand, combined with trade barriers and the high-cost domestic environment, has made recovery difficult.
Factories continue to report limited confidence in new investment or hiring, with data confirming persistent declines in both orders and employment.
While government support for major industrial players like JLR provides temporary relief, the PMI figures signal ongoing weakness across British manufacturing as the year progresses.
The post UK manufacturing falls to six-month low as JLR shutdown disrupts supply chains appeared first on Invezz
Read More