UK Manufacturing
UK manufacturing is growing at its fastest rate for almost 30 years as the easing of lockdown unleashes pent-up demand, according to a the IHS Markit/CIPS Manufacturing Purchasing Managers’ Index (PMI), as it reached a high last month of 65.6, up from 60.9 in April.
Any reading above 50 indicates growth, and April’s figure was the highest since the survey began in 1992.
But there are also signs that suppliers are struggling to keep up with demand.
“Record growth of new orders and employment supported one of the steepest increases in production volumes in the near 30-year survey history,” said IHS director Rob Dobson.
Dobson said growth is being boosted by the unlocking of economies from Covid restrictions and ongoing vaccination programs.
However, the survey indicated that many suppliers are struggling to keep up with the increased demand, which is pushing up the average delivery times to manufacturers.
Businesses particularly highlighted shortages of electronics, plastics and metals, and there were also delays in transport.
In turn, this has led to the highest rise in the cost of supplies since the survey began in 1992, causing manufacturers to increase their own prices.
