The UK manufacturing sector growth slowed in July as supply gridlock resulted in a moderate deceleration in the rates of expansion of production, new orders and job creation, final survey results from IHS Markit showed on Monday.
The Chartered Institute of Procurement & Supply manufacturing Purchasing Managers’ Index came in at 60.4 in July, in line with flash estimate, but down from May’s record high of 65.6. Nonetheless, the index signaled expansion for 14 months.
Production rose for the fourteenth consecutive month in July, as companies benefited from increased new order intakes, rising client confidence and the re-opening of the economy. New business inflows reflected stronger demand from domestic and overseas markets.
That said, rates of growth in both output and new work both eased to four-month lows. Manufacturers reported another growth in new export business.
Solid jobs growth continued, but the rate was insufficient to prevent a further increase in backlogs.
Logistic delays caused by stretched international supply chains led to a further marked lengthening of supplier lead times in July.
With demand outstripping supply, price pressures continued to grow in July. Average input costs rose at a near survey-record pace.
The outlook for the manufacturing sector remained on the upside in July, with 63 percent of companies forecasting output to rise over the coming year.