- Final Manufacturing PMI 51.2 vs.51.3 expected and 49.1 prior.
Key findings:
- Manufacturing PMI at 51.2 in May.
- Output rises across all main sub-sectors and size categories.
- Business optimism springs to 27-month high.
Comment:
Commenting on the latest survey results, Rob Dobson, Director at S&P Global Market Intelligence, said:
“May saw a solid revival of activity in the UK manufacturing sector, with levels of production and new business both rising at the quickest rates since early-2022. The breadth of the recovery was also a positive, with concurrent output and new order growth registered for all of the main sub- industries (consumer, intermediate and investment goods) and all company size categories for the first time in over two years."
"While the latest upturn was dependent on a strengthening domestic market, there were signs of overseas demand also moving closer to stabilisation. Business optimism rose in tandem with the improvement in current conditions, with 63% of manufacturers forecasting their output to be higher one year from now."
“The latest PMI survey data provided a mixed picture for price pressures at manufacturers, however. At the factory gate, output charge inflation strengthened for the fifth successive month and to its highest level in a year. That said, a solid easing in the rate of increase in input costs should help prevent price pressures from becoming embedded.”
