British manufacturers avoided shortages and shipping issues last month to outperform expectations.
Confidence is at its highest level in three months and employment has increased for eight consecutive months, according to an influential survey.
NS IHS Markit The CIPS Manufacturing Purchasing Managers’ Index (PMI) reached 60.3 in August, a slight slowdown from 60.4 in July.
According to a consensus provided by Pantheon Macroeconomics, economists forecast an index score of 60.1, the second consecutive month that the sector has exceeded expectations.
Scores will be slower from May, but well above 65, anything above 50 represents growth. August growth is the highest in the last decade, except for the high levels seen in 2021.
It happened despite a significant delay in the supply chain. In the history of the investigation, things got so bad only in April last year, the early days of the pandemic.
Researchers have put delays in everything from shortages to shipping delays, Brexit Lack of staff in the logistics industry.
“Port capacity issues, delays in international transport, COVID Limitations at some key points in the global supply network and ongoing issues after Brexit, “said Rob Dobson, director of IHS Markit.
“All these factors are likely to continue for the foreseeable future, and manufacturing could slow further in the coming months.”
employment Some manufacturers have reported a lack of both workforce and skills, but one of the largest ranges in the history of research has also risen.
Prices in this sector have risen at the fourth fastest pace since the survey began, and manufacturers have passed on some of these rises to their customers.
As a result, average selling prices have risen at one of the highest rates ever.
“The impact of supply problems has also led to rapid price inflation,” said Dobson.
“The rate of increase in both input costs and selling prices in August remains close to record highs as increased demand chased supply constraints and companies began to pass on price increases to customers and consumers alike. This is affecting most markets, especially automobiles, metals, groceries and electronics. “
Manufacturers shrug short to exceed August expectations
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