LONDON, March 1 Reuters British manufacturers marked a year of falling output in February as factories shed workers at the fastest rate since the onset of the COVID19 pandemic, a survey showed on Friday.

While the SP GlobalCIPS UK Manufacturing Purchasing Managers39; Index PMI rose last month to 47.5 from 47.0 in January revised up from a preliminary reading of 47.1 it has been stuck below the 50 threshold for growth since August 2022.

The survey39;s gauge of output, while improving in February, signalled a 12th successive monthly downturn.

The weakness in British manufacturing mirrored in other major European economies, especially Germany contrasts with the much larger services sector which has shown signs of recovery since Britain fell into recession late last year.

Most business surveys have pointed to a brighter start for companies in 2024, although high inflation and depleted consumer spending power are likely to limit economic growth a tricky backdrop for finance minister Jeremy Hunt ahead of his annual budget on Wednesday.

The manufacturing PMI39;s employment index sank to its lowest level since June 2020. Excluding the COVID19 pandemic, it was the worst reading since June 2009, after the global financial crisis hammered Britain39;s economy.

Input costs and selling prices grew modestly in February, with the latter index hitting a fivemonth high something that might concern some Bank of England officials who are keeping a close eye on inflation…