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UK manufacturing sector activity accelerated in February amid an easing of raw material shortages and supply chain blockages, IHS Markit said on Tuesday.
The IHS Markit-CIPS manufacturing purchasing managers' index rose to a three-month high of 58.0 points in February, up from the preliminary reading of 57.3, which also was January's score. The PMI has remained above the neutral 50.0 mark for 21 successive months, Markit noted.
According to Markit, growth rate of UK manufacturing production accelerated to a seven-month high in February, aided by stronger domestic demand, fewer raw material shortages, and easing global supply chain pressures. Despite input price inflation remaining elevated, the latest survey also signalled that cost increases were starting to moderate, it noted.
Rob Dobson, director at IHS Markit, said: ‘February saw rates of expansion in UK manufacturing production and new orders both accelerate. Growth was boosted by stronger domestic demand and by firms catching up on delayed work as material shortages and supply chain disruptions started to dissipate. Consumer goods output in particular also benefited from increased sales due to a further easing of Covid restrictions.
‘However, the trend in new export orders is less positive, slipping back into contraction after January's short-lived uptick. While companies maintain a positive outlook for the year ahead, rising headwinds, especially the intensifying geopolitical backdrop, are ratcheting up near-term risks to demand and confidence.’
The UK manufacturing PMI was compiled by IHS Markit from responses to questionnaires sent to purchasing managers in a panel of around 650 manufacturers, collected from February 10 to 23.
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