UK and eurozone manufacturers said their supply chains deteriorated for the first time in a year in a sign of the wider disruption to trade caused by Red Sea attacks by Houthi militants, according to a closely watched survey published on Thursday.
The supplier delivery times index, part of the S&P Global purchasing managers’ index (PMI) survey published on Thursday, fell below a score of 50 in both economies in January, reflecting that a majority of businesses are reporting lengthening delivery times for supplies to reach their factories.
The delays to delivery times will add to fears that ongoing Red Sea disruption will create inflationary pressure on Europe’s economy and difficulties for European manufacturers struggling with weak demand.
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