UK manufacturing output up but some troubling signs ahead
1 June 2018
Commenting on the IHS Markit/CIPS UK Manufacturing PMI, which went up from 53.9 in April to 54.4 in May, Duncan Johnston, UK manufacturing industry leader at Deloitte, said:
“This month’s rise is due to an increase in output. However this rise was achieved by manufacturers increasing their stockpiles of unsold products and working through their order backlogs. Manufacturers will need to reduce their output in the coming months to adjust to the lower rate of growth in demand. As seen in the CBI survey last week, manufacturers continue to worry about the state of their order books.
“With input prices continuing to rise, manufactures will find it more difficult to pass on these costs to customers if demand slows further.”
Notes to editors
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