UK PMI Manufacturing index was finalized at 51.2 in May, up from April’s 49.1, marking the highest reading since July 2022. S&P Global noted that output increased across all main sub-sectors and size categories, and business optimism soared to a 27-month high.
Rob Dobson, Director at S&P Global Market Intelligence, described May’s performance as a “solid revival” of activity in the UK manufacturing sector. Production and new business levels both rose at their fastest rates since early 2022. The recovery’s breadth was notable, with concurrent output and new order growth across all main sub-industries—consumer, intermediate, and investment goods—and all company size categories for the first time in over two years.
However, the latest PMI survey data presented a mixed picture for price pressures. Output charge inflation at the factory gate strengthened for the fifth consecutive month, reaching its highest level in a year. Despite this, there was a solid easing in the rate of increase in input costs, which should help prevent price pressures from becoming entrenched.
Full UK PMI manufacturing final release here.
