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UK factories report growing inflation pressures, PMI shows
The S&P Global survey said input price inflation accelerated as port congestion, shipping delays and diesel costs pushed up manufacturers’ expenses.
The PMI reading reached 51.9 last month, up from 51.7, marking the 11th consecutive month of growth with expanding output, new orders, and employment across UK manufacturing.
Stretched supply chains caused manufacturing output growth to slow to its weakest pace in six months, as port congestion and geopolitical tensions created raw material shortages for many Companies.
Input price inflation accelerated for the first time in four months, driven by higher costs for chemicals, electronics, food, and Energy, plus a spike in diesel prices hitting transportation costs.
Rob Dobson, director at Global Market Intelligence, noted price measures switched from signalling decline to renewed uplift, adding the upcoming Budget from the Chancellor will likely prove material in steering confidence.
Nevertheless, overall activity continued to rise for the 11th month in a row, though the manufacturing sector faces challenges from elevated prices that could impact future growth and stability.