LONDON (MNI) – The UK manufacturing sector continued to expand in
February, but the pace of expansion eased back from January.
The headline Markit/Chartered Institute of Purchasing and Supply
index from Reuters stood at 51.2, down from a revised 52.0 in January
and below analysts’ median forecast for a 51.9 outturn. The survey found
some evidence of a pick-up in inflation pressures, with input costs
rising.
Input costs rose for the first time in four months, while new
orders and new export orders were little changed. Markit highlighted the
rise in input costs, saying “the turnaround in the trend was striking.”
The index tracking input prices saw its steepest month-on-month
rise in more than 19 years and the second largest in the survey’s
history.
The manufacturing sector continued to create jobs, and the figures
overall support the belief the sector will make a positive contribution
to Q1 GDP.
Nevertheless, the February survey shows the pace of growth is
relatively modest and inflation concerns are returning.
“UK manufacturers continued to raise production and employment in
February, building on the solid foundation seen so far at the start of
2012. This raises hopes that the sector will post an expansion over Q1
as a whole,” Rob Dobson, senior economist at Markit, said.
He added that the survey showed manufacturing facing headwinds as
“growth of new work from both domestic and overseas clients stagnated
…(and) cost inflation also resurfaced.”
–London newsroom: +44 207 862 7491; email:drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$]
