rki.news | Source: Xinhua
LONDON, June 1 — Britain’s manufacturing sector continued its recovery in May, supported by stronger production and business confidence, although rising costs and supply chain pressures remain challenges.
Data from S&P Global showed the UK Manufacturing Purchasing Managers’ Index (PMI) rose to 53.9 in May from 53.7 in April, its highest level in four years, signaling continued expansion.
Rob Dobson, Director at S&P Global Market Intelligence, said manufacturing growth gained momentum during the month, with production and business optimism reaching three-month highs.
However, he cautioned that the recovery may prove temporary. Dobson said recent growth in new orders was driven partly by businesses and customers accelerating purchases to avoid expected price increases and supply disruptions linked to geopolitical tensions.
He warned that the boost could fade once companies build sufficient inventories.
Meanwhile, manufacturers’ input costs rose at one of the fastest rates in nearly four years. Businesses reported higher prices for chemicals, electronics, energy products, metals, packaging materials, paper, plastics and timber.
Manufacturers attributed the increases to Middle East tensions, commodity market volatility, supply chain disruptions, material shortages, tariffs, higher labor costs and increased taxes, which continue to weigh on the sector’s outlook.