UK Manufacturing PMI climbs to eight-month high
1 April 2015
Commenting on the latest Markit / CIPS UK Manufacturing PMI figures released today, Mark Stephenson, UK manufacturing industry leader at Deloitte, said:
“Whilst the PMI climbed to an eight-month high of 54.4 in March, for two years it has exceeded 50 and the manufacturing sector has been expanding, underpinning the UK’s economic recovery. It is impressive that this expansion is being achieved, as British manufacturers continue to operate in a complex and competitive environment, with a great deal of uncertainty facing them.
“The mixed pattern of global economic growth is causing concern for manufacturers’ margins. Whilst the relatively weak pound puts the UK in a stronger position as an exporter, the rapid weakening of the Euro in 2015 makes for potentially difficult trading with Europe. It will be interesting to see whether this uncertainty around pricing and margins will cause UK manufacturers to overcome their reliance on the Eurozone by expanding elsewhere.
“There is also the impact of varied major export markets - with the Eurozone and the USA experiencing particularly contrasting fortunes - impacting growth strategies in the sector.
“Domestically, record low and falling inflation add further uncertainty, with some concerns that deflation could lead to staggered UK manufacturing demand.
“At the same time, energy prices remain low, helping the sector significantly in keeping input costs down. However, some argue that it could only be a matter of time before customers will demand savings are passed on and margins will again be squeezed.
“There is little doubt that the UK Manufacturing sector deserves recognition for continuing to expand through such challenging times.”
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
Member of Deloitte Touche Tohmatsu Limited.