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UK manufacturing stays in expansion despite softer August momentum
The PMI Manufacturing reading fell to 51.7, while employment rose to the fastest pace in two years and optimism hit a six-month high.
UK manufacturing remained in expansion in August, but momentum softened, according to Action Forex. The PMI Manufacturing index eased from 51.9 to 51.7, a five-month low that still stayed above 50 for a tenth consecutive month and above the flash estimate of 51.5.
Output rose for a fifth straight month, though at the slowest pace since April, and new order growth moderated. Export demand stayed firmer, with new export business growing for an eighth consecutive month on stronger orders from mainland China, the US, the Middle East, and Western Europe.
Labour and confidence indicators improved, with employment rising for a fifth month and at the fastest pace in two years, supported by higher production requirements and improved order inflows. Business optimism climbed to a six-month high, with nearly half of manufacturers expecting higher production over the next 12 months.
Action Forex also noted that cost and supply pressures continued to ease, with input price inflation slowing to the weakest since February and supplier delivery delays the least severe in six months, even as energy volatility, supply constraints, geopolitical tensions, and transport disruption kept costs elevated.