UK manufacturing grows despite increase in costs
Published: 03:08 PM,Aug 02,2021 | EDITED : 07:08 PM,Aug 02,2021
A technician moves the body of a car on the production line of the Rolls-Royce Goodwood factory, near Chichester, Great Britain. — Reuters
LONDON: UK manufacturing businesses are still growing, but are having to fend off some of the fastest increases to their costs in decades.
The manufacturing sector outstripped expectations in the monthly IHSMarkit/CIPS purchasing managers’ index survey released on Monday.
It showed a reading of 60.4 last month, down from a 63.9 score in June.
The decrease comes on the back of record highs earlier this year, as the economy pushed to leave the impact of the pandemic behind.
Despite the fall, the July score is still evidence of high growth, and significantly ahead of the 57.1 reading that economists had expected for the month.
Any score above 50 is considered to show growth in the sector.
Partly because of this continuing growth, the cost of materials has been soaring as demand increases to match the necessary output.
Problems in supply chains around the world has also put pressure on the price of many items.
“Supply gridlock resulted in a moderate deceleration in the rates of expansion of production, new orders and job creation,” Duncan Brock, group director at the Chartered Institute of Procurement & Supply, said.
— Reuters
The manufacturing sector outstripped expectations in the monthly IHSMarkit/CIPS purchasing managers’ index survey released on Monday.
It showed a reading of 60.4 last month, down from a 63.9 score in June.
The decrease comes on the back of record highs earlier this year, as the economy pushed to leave the impact of the pandemic behind.
Despite the fall, the July score is still evidence of high growth, and significantly ahead of the 57.1 reading that economists had expected for the month.
Any score above 50 is considered to show growth in the sector.
Partly because of this continuing growth, the cost of materials has been soaring as demand increases to match the necessary output.
Problems in supply chains around the world has also put pressure on the price of many items.
“Supply gridlock resulted in a moderate deceleration in the rates of expansion of production, new orders and job creation,” Duncan Brock, group director at the Chartered Institute of Procurement & Supply, said.
— Reuters