Commenting on the latest UK Manufacturing PMI, Louise Smith, Managing Director and industrial manufacturing sector lead at Interpath, said: “UK manufacturing remains in expansion, with PMI hitting a near four-year high. There’s no doubt the industry has shown great resilience to remain at an index above 50 despite the current geopolitical climate, and the continued inflationary pressures from raw materials, energy and transport costs which is taking its toll on business confidence.
“However, from what we are seeing on the ground, some of the tailwinds may be temporary, whilst the headwinds could become more persistent. Some businesses have been able to protect margins by passing on price increases or entering fixed price energy agreements at an opportune time, but these remain the exception, rather than the norm. For much of the sector, we’re starting to see more cautious decisions around capital and people investment. We’re also seeing orders brought forward to protect against further price increases, and the combination of these factors may challenge expansion in the months to come.”
