UK manufacturing sector bounces back with strong demand from overseas
Commenting on the latest results from the Markit/CIPS manufacturing PMI survey, Mike Thornton, RSM’s head of manufacturing said:
“After a slowing in new business in domestic and export markets reported in June, positive sentiment in the manufacturing sector bounced back in July. New order books are looking healthy, due in large part to foreign demand from North America, Europe, Asia-Pacific and the Middle East which rose at its fastest rate since April 2010. Domestic demand also remained a positive contributor to order books.
“Production increased for the 12th successive month, as did staffing levels. Manufacturers have also been buoyed by an easing in cost pressures which had been exacerbated by the fall in the value of sterling and the consequent rise in raw material prices.
“The optimism in the sector shows no sign of abating. Looking ahead, almost half of those surveyed said they expect production to be higher in a year from now, with only 5% forecasting a contraction. The only clouds on the horizon appear to be the strain on supply chains, as delivery times were stretched to their highest level in over six years, in addition to the difficulties experienced by some in sourcing raw materials such as rubber and aluminium.”