In February, the UK’s manufacturing sector grew at the fastest rate recorded since July last year according to the Purchasing Managers’ Index (PMI), which is based on a survey of purchasing managers at about 650 manufacturers.
The final manufacturing PMI came to 58, up from January’s value of 57.3, thanks to pressure in the global supply chain easing and raw materials becoming more available, combined with a healthy level of domestic demand. Overall, optimism was also at a six-month high, with 64% of respondents anticipating increasing production over the coming year thanks to robust order pipelines, a growing market, smoother supply chains and fewer restrictions related to the COVID-19 pandemic.
In a statement, IHS Markit’s Director, Rob Dobson, said about the acceleration in both new orders and production for manufacturing:
“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 benefitted from increased sales due to a further easing of COVID restrictions.”
Dobson added that despite UK companies keeping a positive perspective for the coming year, some potential short-term risks to confidence and demand were ratcheting up. Indications of persistently high oil and energy costs were also a source of concern for inflationary pressure.
While the overall situation looks positive for manufacturers, it is certainly no time for complacency. At TrAchem, we help businesses to streamline the purchasing process for lubricants by consolidating suppliers and facilitating access to premium products like the Millers Millfood food-grade grease.