Deloitte's UK manufacturing leader, Duncan Johnston, comments on today’s PMI figures

The UK PMI data for May shows a reading of 65.6, up from 60.9 in April. Responding to this, Deloitte’s UK manufacturing leader Duncan Johnston said:

“The strength of the economic recovery has caught the manufacturing sector by surprise. This growth in demand is consistent with Deloitte’s own economic forecast predicting Q2 and Q3 this year will equate to what would be four years of growth in normal times.

“This rapid rise in demand means that manufacturers are working hard to keep pace with orders by increasing capacity and creating more jobs, while experiencing supply shortages. Rising input prices and consequently selling prices provide further evidence of a build-up of inflationary pressure.

“Manufacturers are optimistic as never before: over 70% believe production will be higher in a year’s time, compared to only 3% who believe it will be lower.”

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