The latest seasonally adjusted S&P Global UK Manufacturing Purchasing Managers’ Index (PMI) rose to 53.9 in May from 53.7 in April, reaching its highest level in four years. The index has now remained above the 50-point threshold that separates growth from contraction for seven consecutive months.
Manufacturing output increased for a second month, driven primarily by growth in the intermediate and investment goods sectors. Consumer goods production, however, declined slightly during the period.
Demand conditions also improved with new orders rising for the sixth consecutive month, supported by domestic and international customers. Export sales expanded for a fifth successive month, with manufacturers reporting stronger demand from markets including China, Europe, Japan, North America and South Korea.
Some firms indicated that customers had accelerated purchasing activity in anticipation of future price increases and potential supply chain disruption. This precautionary buying contributed to higher levels of incoming business during May, although it may temper demand growth later in the year.
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