LONDON, Feb. 1 (Xinhua) -- The United Kingdom's (UK) manufacturing sector continued its downturn in January amid rising supply chain difficulties caused by the recent Red Sea crisis, a business survey said on Thursday.
The S&P Global UK Manufacturing Purchasing Managers' Index posted 47.0 in January, below the earlier flash estimate of 47.3. The index has signaled a deterioration in operating conditions every month for the past 18 months.
January saw the sector's output and new orders decline further, leading to additional job losses and cutbacks in purchasing and stock holdings, the survey noted.
In addition, rising geopolitical tensions over the Red Sea route to the Suez Canal led to a marked increase in average vendor lead times during January, as inputs ordered from overseas were re-routed around the lower tip of Africa.
"Cost and stock management initiatives are being complicated by the Red Sea crisis," said Rob Dobson, Director at S&P Global Market Intelligence.
"Some of our panel members estimate that a minimum of 12-18 days could be added to some expected deliveries, disrupting production schedules and raising inflationary pressures at a time when manufacturers are already struggling with weak demand both at home and overseas," Dobson added.