Outlook for UK manufacturing remains positive despite rising input prices
1 March 2018
Commenting on the IHS Markit/CIPS UK Manufacturing PMI for February, which stands at 55.2 today – down from 55.3 in January – Duncan Johnston, UK manufacturing industry leader at Deloitte, said:
“This month’s index continues the downward trend we have seen in recent months, yet the sector has got off to a stronger start in 2018 than many expected.
“While manufacturers have been affected by rising input prices, export orders continue to benefit from a weaker pound and a buoyant global economy. Manufacturers also commented that domestic demand had strengthened, leading to a more positive outlook for the coming months, and giving them the confidence to take on more staff.
“This is also reflected in other surveys, with the ONS data showing that the manufacturing sector grew by 1.3% in the fourth quarter of 2017, and the CBI Industrial Trends survey last week pointing to further growth on order books.
“Consensus forecasts point to a slowdown in inflation, which, combined with record levels of employment could start to push wages higher. This in turn would benefit consumer spending. Given the strength of the global economy and potential for improving demand in the UK, the outlook for UK manufacturing remains robust.”
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