UK factory output stages first rise in eight months in February, S&P Global says

The downturn in the UK's manufacturing sector abated somewhat in February, the results of a closely followed survey confirmed.

S&P Global's UK factory sector Purchasing Managers' Index improved from a reading of 47.0 for January to 49.3 in February.

That was also slightly better than a preliminary reading of 49.2.

Output levels rose for the first time in eight months, as demand stabilised and supply chains improved, while price pressures continued to moderate with costs increasing at their slowest pace since July 2020, the survey compiler said.

The overall level of new work fell for a ninth month in a row, with some companies citing the cost of living crisis and others weaker export order intakes, but the trend showed additional signs of stabilisation.

In parallel, the rate of decline in new export business was the weakest since March 2022, although lower intakes from key markets including the US, mainland Europe and China were reported.

Nonetheless, according to Rob Dobson, director at S&P Global Market Intelligence: "

"Manufacturers' confidence also strengthened, with 60% of companies forecasting production will expand during the coming year."

"Manufacturers benefited from growing signs of a global economic recovery and the easing of COVID restrictions by China. This process of economic revival, alongside signs of inflation peaking and reduced recession fears, should hopefully help UK manufacturers eke out further growth in the coming months."