Manufacturing at highest rate in seven months in February as bounce back from the pandemic continues
British manufacturers stepped up production at the fastest rate for seven months in February as the economy continued to recover from the pandemic.
But factories’ momentum may falter as the war in Ukraine threatens to dent the rebound.
Last month, there was strong demand from UK consumers, fewer raw material shortages and easing global supply chain pressures, says the Purchasing Managers’ Index from IHS Markit.
Last month, there was strong demand from UK consumers, fewer raw material shortages and easing global supply chain pressures, according to IHS Markit’s Purchasing Managers’ Index
Its headline reading, which also takes into account job creation, climbed to a three-month high of 58, from 57.3 in January.
Any reading above 50 indicates growth. But costs are rising at near-record pace, as are the prices charged to customers.
This threatens to get worse, experts warned, as the conflict in Ukraine poses a risk to the price of raw materials and food.
Heavy industry will also face an energy headwind.