UK Manufacturing PMI Slips to 60.4 in July with Input Shortage Driving Up Cost

Source: IHS Markit

The UK seasonally adjusted Manufacturing PMI was 60.4 in July, down from 63.9 in June as output and new order growth slowed.

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• The July’s decline in the UK Manufacturing PMI is a drop from the month of May when it hit a record high of 65.6. 
• The rate of manufacturing output was up for the fourteenth month in succession buoyed by an increase in new orders, clientele confidence, and an economic rebound.
• The manufacturing input prices were up due to logistic delays, and the shortage in supply of labor and raw materials.
• Manufacturing job growth continued in July though at a lower rate to reduce the backlog in workload.
• Inflationary pressure continues to rise with the increase in manufacturing demand in contrast to the supply. Average input cost is rising almost at our record pace.
• There is a positive business outlook in the private sector due to better market conditions, reduced post-Brexit anxiety, and the opening up of the economy in the post-Covid-19 era.