The UK manufacturing sector posted a sharp decline in output this month, as Britain’s biggest carmaker JLR suffered a cyber-attack and paused production, a shutdown that will drag on into October.
The business secretary, Peter Kyle, will visit Jaguar Land Rover (JLR) on Tuesday and meet some of its suppliers there after the cyber-attack.
A monthly survey of purchasing managers at UK manufacturers showed output shrinking at the fastest pace in six months in September, with order books weakening – partly due to the JLR shutdown. This led to a worsening decline across the manufacturing sector, with the headline index at a five-month low.
“There were some specific mentions of lower manufacturing output across the automotive supply chain as a result of plant stoppages at Jaguar Land Rover,” according to the data provider S&P Global, which compiles the closely watched survey.
JLR has extended its pause in production until 1 October, with a knock-on impact on the companies that supply it. Last week, the company had said production would be frozen until at least Wednesday.
Unions have called for a furlough scheme for workers who are suffering because of the shutdown caused by the 31 August cyber-attack.
Workers have been unable to produce vehicles at any of its factories across the UK, Slovakia, Brazil and India.
The industry minister, Chris McDonald, said: “We have two priorities: helping Jaguar Land Rover get back up and running as soon as possible and the long-term health of the supply chain.
“The business secretary and I are visiting JLR today to host companies in the supply chain, to listen to workers and hear how we can support them and help get production back online.
“We are acutely aware of the difficulties the stoppage is causing for those suppliers and their staff, many of whom are already taking a financial hit through no fault of their own – and we will do everything we can to reassure them that the government is on their side.”
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JLR is taking the lead on support for its own supply chain, rather than any state intervention.
A JLR spokesperson said: “We have made this decision to give clarity for the coming week as we build the timeline for the phased restart of our operations and continue our investigation.
“Our teams continue to work around the clock alongside cybersecurity specialists, the NCSC (National Cyber Security Centre) and law enforcement to ensure we restart in a safe and secure manner.
“Our focus remains on supporting our customers, suppliers, colleagues, and our retailers who remain open. We fully recognise this is a difficult time for all connected with JLR and we thank everyone for their continued support and patience.”