Due to Brexit repercussions causing enhanced caution around production processes, May has seen a weakening in industry conditions and plans.
A survey conducted by the IHS Markit for the Chartered Institution of Procurement showed its purchasing manager index falling by nearly 3% in May, suggesting that the sector is close to contracting.
Only one of the three sub-sectors of construction, housebuilding, saw an expansion throughout May. However, this is unable to compensate for the falls in the other areas of commercial and engineering work.
The results from the index released by CIP’s will be watched closely to evaluate the position of the economy and due to the recorded drop in production, attention will now be focused on the larger services in the sector.