(Alliance News) - The UK manufacturing sector concluded a tricky 2023 with another decline in December, survey results showed on Tuesday.

The latest S&P Global UK manufacturing purchasing managers' index fell to 46.2 points in December, having risen to a seven-month high of 47.2 in November. The PMI fell further below the 50-point no-change mark, remaining below the threshold for the 17th consecutive month.

The figure landed below the flash estimate of 46.4.

"The UK manufacturing sector ended 2023 on a weak footing. The downturn in production volumes accelerated as intakes of new work from both domestic and export clients declined. The further slide in output volumes reflected overstocking at clients and tighter inventory policies at manufacturers," S&P Global said.

S&P Global said all five of the PMI sub-indices, new orders, output, employment, stocks of purchases and suppliers' delivery, have remained in deterioration.

S&P Global Market Intelligence Director Rob Dobson said: "UK manufacturing output contracted at an increased rate at the end of 2023. The demand backdrop also remains frosty, with new orders sinking further as conditions remain tough in both the domestic market and in key export markets, notably the EU.

"The downturn has hit manufacturers' confidence, which dipped to its lowest level in a year, and encouraged renewed cost caution with further cutbacks to stock levels, purchasing and employment."

The manufacturing survey draws upon a panel of 650 firms. Responses were collected in the second half of the month.

By Harvey Dorset, Alliance News reporter

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