Press releases

Outlook for UK manufacturing remains strong but input costs are accelerating

01 November 2017

Commenting on the IHS Markit/CIPS UK Manufacturing PMI for October which increased to 56.3 today – up from 56.0 in September – Duncan Johnston, UK manufacturing industry leader at Deloitte, said:

“The sustained strength in Manufacturing PMI in line with the optimism reported in other industry surveys has been encouraging news for the sector. We’re now also seeing this reflected in economic output: last week’s GDP estimate suggests that manufacturing has now returned to growth.

“Today’s survey also shows that input prices continue to rise swiftly and the concern is this will feed through to higher prices for customers and end consumers. Reduced investment appetite risks hindering productivity growth in the sector. Last week’s CBI Industrial Trends Survey highlighted that investment intentions have waned, while the EEF have found that investment in plant and machinery has dropped.

“It is uncertain whether concerns will be eased over the coming months but manufacturing companies will be eagerly anticipating this month’s Budget. Industry associations have been urging for measures that help boost business investment and support growth.”

End

Notes to editors

About Deloitte
In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms.

Deloitte LLP is a subsidiary of Deloitte NWE LLP, which is a member firm of DTTL, and is among the UK's leading professional services firms.

The information contained in this press release is correct at the time of going to press.

For more information, please visit www.deloitte.co.uk

Member of Deloitte Touche Tohmatsu Limited.

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