Wednesday, August 10, 2022

Thirty-year high for UK manufacturing growth

The staggered easing of lockdown has released repressed demand which has led to UK manufacturing growing at its fastest fate for almost three decades, a new survey has revealed.

The IHS Markit/CIPS Manufacturing Purchasing Managers’ Index (PMI) reached a high in May of 65.6, rising from 60.9 in April (the highest since the survey began in 1992).

Any reading above 50 indicates growth and this growth is being driven by the unlocking of economies from pandemic restrictions and ongoing vaccination programmes.

However, despite this, signs suggest that suppliers are struggling to keep up with demand which, in turn, is pushing up average delivery times to manufacturers.

Shortages of electronics, plastics and metals have been highlighted as suffering the worst shortages.

This has therefore led to the highest rise in the cost of supplies since the survey began 30 years ago which, in turn, has seen manufacturers increase their own prices.

“Record growth of new orders and employment supported one of the steepest increases in production volumes in the near 30-year survey history,” said IHS Director Rob Dobson.

He added: “This is being felt across the globe, as highlighted by a record rise in new export business during the latest survey month.”

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