The rate of contraction in the manufacturing sector has continued to increase, with a shift in focus towards large-sized producers.

The latest data from CIPS/Markit Purchasing Managers’ Index hit 34.7 index points (with 50 equaling no change) in February.

However, Greg Latham, managing director of manufacturing, engineering and logistics recruiter Encore, told Recruiter some sub-sectors had escaped the worse effects of the downturn.

“Across the board automotive and aerospace are particularly in a slump. They have been for four or five months and we don’t expect that to change.

“It depends on the sector. We are finding renewable energy, gas, food and anything associated with the public sector in manufacturing and engineering is doing well.”

The fall in production and employee numbers has shifted towards large sized companies, according to the research:

“There was a noticeable shift in the focus of the manufacturing recession towards large sized companies in February. Rates of decline in output, new orders, new export orders and employment were all substantially more severe than at SMEs.”

Roy Ayliffe, director of professional practice at the Chartered Institute of Purchasing & Supply, says: 

“Latest PMI data confirms the degeneration of the UK manufacturing sector as it contracted at a rate evocative of the dire conditions seen in the early 80s.”