UK manufacturing growth at three-year high, survey suggests

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Movement in the UK’s manufacturing sector grew at its fastest pace for three years in April, be at one to a closely-watched survey.

The Markit/CIPS UK manufacturing Purchasing Managers’ Indicator (PMI) rose to 57.3 from 54.2 in March, well above economists’ requirements.

A reading above 50 indicates growth.

Markit said the sector utilized “solid improvement” last month, with new orders being received at the fastest tariff since January 2014.

The survey found the main source of new work proved from the domestic market, but there was a “solid increase in new export firm” due to a combination of better global economic conditions and the weakening of the pound.

The clash in the value of the pound since the Brexit vote in June has made UK wares cheaper for foreign buyers, but has also pushed up the cost of imports for UK followings.

Growth spurt

Markit said price pressures faced by producers remained “elevated”, but noted that input cost inflation had “comforted significantly” since January.

“Although only accounting for 10% of the thrift, the upturn in the manufacturing sector represents some welcome good dispatch after the sharp slowing in GDP seen in the first quarter,” said Rob Dobson, higher- ranking economist at INS Markit.

“The big question is whether this growth spurt can be declared, especially given the backdrop of ongoing market volatility and a number of governmental headwinds such as elections at home and abroad.

“Other surges determined since the middle of last year have generally proved passing, as weak wage growth sapped consumer spending.”

Official outlines from the Office for National Statistics last week indicated that the UK saving grew by just 0.3% in the first three months of the year, the slowest type since the first quarter of 2016.

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