Unexpected surge takes UK manufacturing to three-year high
Surprisingly strong demand from both home and overseas markets saw manufacturing output in the UK surge to a three-year high in April.
Manufacturing in “rude health”
Lee Hopley, chief economist at the manufacturers’ organisation EEF, described the latest PMI reading as proving UK manufacturing was in “rude health”.“Following the strong first quarter for manufacturing, today’s PMI confirms that lift off continued at the start of the second, with the surge in the pace of expansion partly thanks to the resilience of the UK order pipeline and the fact the global economy is investing again,” she said.“Against all expectations nine months ago, UK manufacturing appears to be in rude health, having navigated significant exchange rate swings and rising input costs, companies are capitalising on the upswing in the world economy and pressing ahead with some new investments.“While all the indicators are pointing to the potential of another year of decent growth for manufacturing, the importance of a comprehensive and enduring industrial strategy for the UK must not get lost in the noise of election campaigning.”Related news:
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Positive levels of new investment
Mike Rigby, head of manufacturing at Barclays, added, “The UK economy as a whole may have made a sluggish start to the year but, following a solid first quarter, manufacturing continues to grow with healthy order books and encouraging levels of new investment and employment.“Despite some easing, inflationary pressures will continue to take their toll on factory gate prices and ultimately manufacturers’ margins; however, the weakness in sterling and an improving global outlook continue to provide export opportunities for the sector.“What we don’t want to see now is the prospect of fractious Brexit negotiations fostering a more cautious and uncertain approach to investment from the sector.”Publication of the PMI coincided with an announcement from steel manufacturers Liberty House that it is to create 300 jobs and make multimillion-pound investments to secure the future of five UK plants and two distribution centres in China.Liberty, which has now formally completed a £100 million buyout of the speciality steels division of Tata Steel UK, said it will invest up to £20 million in new plant and equipment to boost competitiveness and secure international market leadership for a business that produces a range of high-value steels used in the manufacture of vehicles, aircraft, industrial machinery and equipment for the oil and gas industry.Get access to our free Global Mobility Toolkit©2024 Re:locate magazine, published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein.