| UK manufacturing continued to improve in February, with steady growth in output and new orders. The S&P Global UK Manufacturing PMI registered 51.7, slightly below January’s 17-month high of 51.8 but still above the 50 mark that signals expansion. This is the fourth month in a row that the sector has grown.
Production increased for the fifth consecutive month, supported by stronger demand at home and abroad. Export orders rose at the fastest pace in four-and-a-half years, with companies reporting better demand from China, the EU, the Middle East and North America. Consumer goods producers performed best, while investment goods firms saw a slight drop in total new orders.
Larger and medium-sized companies reported rising output and sales, but small manufacturers continued to struggle. Employment declined for the sixteenth month running, although the pace of job losses slowed.
Cost pressures intensified, with higher prices for metals, energy and electronic components pushing up input costs. Some firms raised selling prices, though consumer goods companies reduced prices to stay competitive.
Overall, business confidence remains fairly strong, with many manufacturers expecting production to grow over the next year despite ongoing economic and geopolitical uncertainties. |