In March the final UK manufacturing PMI index scored 47.9 points from 48 preliminary and 49.3 previously. This is what S&P Global reports, according to which “UK manufacturing production returned to contraction at the end of the quarter, as companies scaled back production in response to less than encouraging market conditions. While total new orders saw a fractional increase, this follows a nine-month sequence of contraction and suggests order levels remain low overall. The decline in new export orders continues to represent a significant drag on demand, which offsets signs of a modest recovery in the domestic market.” “In March, however, there was better news on the price and supply front. Input price inflation reached its lowest level since June 2020. Although the index that takes into account selling prices also signaled a deceleration, it remained at a higher level than the equivalent factor costs production, suggesting a certain respite for producers’ margins. Supply chains have also continued to recover from the immense pressure experienced over the past three and a half years, with March seeing suppliers’ average delivery times improve by the largest amount in the survey’s 31-year history. It is hoped that this will translate into a further reduction in costs and less interruption of production flows in the coming months” they conclude.
