IHS Markit/CIPS UK Manufacturing PMI
UK Manufacturing growth gathers pace as new order inflows strengthen
- Manufacturing PMI at four-month high of 56.
- Broad-based expansion seen across all product categories
- Input price inflation accelerates for first time in seven months
The rate of expansion in the UK manufacturing sector accelerated again in August. This was highlighted by the seasonally adjusted IHS Markit/CIPS Purchasing Managers’ Index® (PMI®) posting 56.9, up from 55.3 in July, to its second highest level in over three years.
All five of the PMI components – output, new orders, employment, suppliers’ delivery times and stocks of purchases – were consistent with a stronger performance for the manufacturing industry during August.
Production rose at the steepest pace in seven months, underpinned by faster intakes of new work received. Moreover, rates of expansion in
both variables were among the best registered since mid-2014.
The domestic market was the prime source of new contract wins, while the trend in new export business also remained robust. Although the rate of improvement in foreign demand eased from July’s near-record high, it remained among the strongest seen since new export orders data were first collected in January 1996.
Sources: IHS Markit, UK Office for National Statistics