UK manufacturing sector returns to growth in May
The UK manufacturing sector returned to growth in May, with output growing at the fastest pace in more than two years, according to a survey released on Monday.
The S&P Global manufacturing purchasing managers’ index rose to 51.2 from 49.1 in April, coming in above the 50.0 mark that separates contraction from expansion. This marked the highest reading since July 2022 but was just a touch lower than the flash estimate of 51.3.
The survey also showed that business optimism hit its highest level in 27 months, with 63% of companies expecting output to expand over the coming year.
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 subindustries (consumer, intermediate and investment goods) and all company size categories for the first time in over two years.
"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."