Steady Recovery Growth of UK Manufacturing Industry
The UK manufacturing sector grew slightly last month compared with a five-month low recorded in March.
Unfortunately, the ongoing war in Ukraine, Covid lockdowns in China, and sluggish exports to European customers caught up in post-Brexit paperwork are all taking a toll.
The closely followed S&P Global/CIPS Purchasing Managers’ Index (PMI) registered a score of 55.8 in April, up from 55.3 in March. (Above 50 is interpreted as a sector that is expanding).
The new order growth rate has slowed to its weakest in the last 15-month upturn, surpassing the Covid-19 low.
Lower demand from foreign businesses for exports, as well as increased costs due to inflation, have kept some firms from investing.
Spending was also affected by transportation issues and the ongoing conflict in Ukraine, which forced businesses to wait for developments.
The price gap has been increasing inflation, with 85 percent of businesses reporting higher purchase prices paid for goods, and the rate of consumer goods producer inflation hitting all-time highs.
Across the board, costs were up, with CEOs reporting rises in chemicals, energy, food, freight, fuels, gas and metals , among other things.
Higher growth in output and new orders improved the sector’s employment situation, with employment increasing for the 16th month in a row in April.
News Credit: UK manufacturing remains steady but warning signs remain
Micro Weighing Solutions are the UKs leading manufacturer of industrial weighing scales.