Manufacturing in UK makes strong start to 2017
Price pressures intensified, however, as input cost inflation surged to a survey record high and output charges also increased at one of the steepest rates in the series history.
The seasonally adjusted Markit/CIPS Purchasing Managers’ Index(PMI) posted 55.9 in January, only a couple of ticks below December’s two-anda-half year high of 56.1.
The headline PMI has remained above the neutral mark of 50.0 for six straight months. The latest expansion of manufacturing production was underpinned by a solid increase in new order intakes.
The rate of growth in new business moderated following the prior month’s high, but remained well above the long-run survey average.
The domestic market was the prime source of new business wins in January.
There was also a modest increase in new export orders, although the pace of expansion was noticeably slower than during the prior survey month.
Where an increase in new work from overseas was reported, this was linked to improving global market conditions and the weak sterling exchange rate.
By sector, the strongest growth of output and new orders was registered by intermediate goods producers.
The investment and consumer goods sectors also registered further solid expansions of production and new business. ■