UK PMI Manufacturing was finalized at 50.3 in March, climbing from February’s 47.5 to mark a 20-month high. This development represents the sector’s first move above the critical 50.0 threshold since July 2022, indicating a tentative resurgence in manufacturing activity.
Rob Dobson, Director at S&P Global Market Intelligence, highlighted, “The end of the first quarter saw UK manufacturing recover from its recent doldrums.” This recovery is attributed primarily to revival in production and new orders, spurred by strengthening domestic demand. Despite the growth being characterized as hesitant, following year-long downturns, the shift towards expansion signals a turning point for the sector.
The resurgence in demand has also buoyed manufacturers’ confidence, with positive sentiment reaching an 11-month peak. Remarkably, 58% of companies surveyed anticipate increase in their output over the coming year.
However, challenges persist, including “weak export performance and supply chain stresses,” which continue to hinder the sector’s full recovery potential. The EU market, in particular, has been identified as the “main drag” on overseas demand, compounded by ongoing issues in the Red Sea impacting supply chains.
Full UK PMI manufacturing release here.
