Manufacturing production rises at fastest pace since May 2014 as re-opening of economy continues
August saw UK manufacturing output expand at the fastest rate for over six years, as companies and their clients restarted operations following coronavirus disease 2019 (COVID-19) lockdowns, according to the latest exonomic bulletin from IHS MARKIT / CIPS UK MANUFACTURING PMI ...
- The seasonally adjusted IHS Markit/CIPS Purchasing Managers’ Index® (PMI®) rose to a 30-month high of 55.2 in August, up from 53.3 in July but a tick below the earlier flash estimate of 55.3. The PMI has posted above its neutral 50.0 mark for three consecutive months.
- Underpinning the scaling-up of output was the fastest increase in new orders since November 2017. The domestic market remained the prime source of new contract wins, although new export orders rose moderately for the first time in ten months. Manufacturers mentioned improved demand from the EMEA region, North America and Australia. The main factors driving production and new orders higher have been the re-opening of manufacturers and their clients following lockdowns and a loosening of other restrictions in place to combat COVID-19.
- This has not supported a similar recovery or stabilisation in demand for staff, however, with job losses recorded for the seventh successive month.
- Input price inflation accelerated to a 20-month high in August. Rising costs were linked to reduced availability for certain inputs and supply-chain disruption caused by COVID19. Exchange rates and increased freight costs were also mentioned.