Irwin Mitchell Comment On Latest Findings
The IHS Markit UK Manufacturing Purchasing Managers’ Index (PMI) was broadly unchanged from last month at 54.4.
The figure, which was released today, was up just 0.1 on the 54.3 figure for May and was revealed alongside an increase in new business.
The performance of the sector remained relatively subdued when compared to the marked pace of growth seen by the PMI before the turn of the year. In fact, it is almost four points below the 51-month high reached in November last year.
Although the rate of increase in new business edged up to a three-month high, it remained among the weakest registered over the past year and-a-half. Output growth slowed from May’s five-month high and input cost inflation picked up, leading to increased selling prices. In fact, the average PMI reading over quarter two (54.2) is the weakest since the final quarter of 2016.
Dorrien Peters, partner and Head of manufacturing at law firm Irwin Mitchell, says:
Expert Opinion“Input price rises, trade tariff uncertainty and ongoing Brexit worries are having an impact on the positive sentiment amongst manufacturers.”
"Within this backdrop of subdued growth, it was pleasing to see a solid improvement in job creation. We must remember though that it was below the job growth recorded in most of 2017, which highlights the challenges that are currently being faced by the sector."
Dorrien Peters - Partner
Tony Piggott, Halo Financial’s commercial development manager say: “UK manufacturing activity continues to expand, albeit at a subdued pace compared to the final quarter of 2017. The ongoing uncertainty caused by escalating trade tensions globally, Brexit inaction and disagreement in Europe over immigration policy leave companies cautious to invest or enter into new orders."