UK economy still in the doldrums as manufacturing slump deepens

Chancellor Rachel Reeves is receiving mixed messages about the state of the UK economy ahead of her Spring Statement, with S&P Global's purchasing managers' index (PMI) indicating a rise in services but a decline in manufacturing.

The Spring Statement is set to be delivered on Wednesday amidst escalating global trade war tensions and deepening concerns over impending tax increases, as reported by City AM.

The latest S&P UK PMI survey suggests that manufacturers are already feeling the impact of President Donald Trump's tariff threats on steel and aluminium, as weak demand has led to falling export sales.

In March, the UK manufacturing PMI dropped further to 44.6, marking an 18-month low.

Input cost inflation continues to significantly exceed the long-term survey average, while manufacturers' confidence also continues to fall.

Rachel Reeves is not anticipated to unveil her complete industrial strategy until mid-year, although a specific plan for manufacturing may be introduced sooner.

The most recent data from S&P Global aligns with a series of surveys indicating a downturn in manufacturing.

Ben Jones, an economist at the Confederation of British Industry (CBI), attributes a decrease in manufacturing output at the start of the y