- Final Manufacturing PMI 52.5 vs. 52.5 expected and 52.1 prior.
Key findings:
- Manufacturing PMI at 52.5 in August.
- Broad-based growth by sector.
- Domestic market drives new contract wins.
Comment:
Rob Dobson, Director at S&P Global Market Intelligence
“The UK manufacturing sector remained a positive
contributor to broader economic growth in August. The
headline PMI hit a 26-month high of 52.5, reflecting solid
expansions in output and new orders and the strongest
jobs growth for over two years. The upturn is broad-
based across manufacturing, with the investment goods
sector the stand-out performer.
The upturn continues to be driven by the domestic
market, which is helping to compensate for lost export
orders. The trend in export orders a key cause for
concern, with new business from overseas having fallen
continuously since early in 2022. UK manufacturers
are experiencing difficulties in securing new contract
wins overseas due to weaker demand from Europe,
a slowdown in mainland China, freight delays,
competitiveness issues, high shipping costs, global
conflicts and political uncertainty.
Many of these issues
are also impeding imports which, while benefiting
domestic suppliers, is causing supply chain-related
production constraints as witnessed by a further marked
lengthening of supplier delivery times.
These supply constraints and higher shipping costs
continued to drive up input prices for manufacturers,
which rose sharply again in August by recent standards.”
UK Manufacturing PMI