UK manufacturing growth slowed in February. The IHS Markit/CIPS Purchasing Managers’ Index (PMI) fell to 55.2 in February from 55.3 in January, taking the index to an eight-month low and loosing further ground after hitting a 51-month high last November.
Whilst new order growth rose at a faster pace than in January and new export business rose at a solid (albeit slower) pace, reduced production growth was reported across the consumer, intermediate and investment goods sub-sectors.
Average input costs rose sharply during February, as manufacturers experienced price increases for a broad range of commodities and raw materials.
“Supply-chain delays are also reining in production growth,” says Rob Dobson, Director at IHS Markit, which compiles the survey.
“Any easing in these constraints would not only provide a further boost to growth, but also ease some of the pressure on input costs. Price inflation currently remains stubbornly high, as suppliers pass on higher commodity and raw material costs in part caused by demand outpacing supply. If this feeds into rising consumer prices, household spending could take a further knock in coming months.”
At Beavis Morgan, our specialist advisers to the manufacturing sector are able to assist with all aspects of business performance including ensuring that adequate measures are put in place to protect the health of your business, both now and for the future.
Contact Steve Govey or your usual Beavis Morgan Partner for further information about how we can assist you and your business.