The UK Manufacturing Purchasing Managers’ Index (PMI) showed solid growth for March 2018 at 55.1, up from 55.0 in February. Output continues to grow and cost pressures have eased, all spelling good news for UK manufacturers.
Output still growing
There was steady growth for the UK manufacturing sector throughout March, with output growth increasing. In contrast, new orders and employment, both up in previous months, are growing at a slower pace.
Manufacturers in the UK are seeing a steady flow of new business, both domestically and internationally. With new export orders up for nearly two years in a row, export business is thriving; with manufacturing firms putting success in this area down to Sterling weakness, greater marketing and awareness, and repeat business.
Cost pressures ease
Both input and output costs, which have been building significantly over the past year, have eased somewhat since February, providing a further cause for optimism.
Manufacturing sector confidence remains strong for the UK, with over half of companies surveyed forecasting business expansion in the coming year.
Tony Piggott, Head of Corporate at currency specialist, Halo Financial
, observed, “More good news for the UK manufacturing industry, as growth continues and the overall trends look positive. Cost pressures have calmed a little and output and exports are still on the up, although growth is at a slower pace in terms of new orders and jobs. A number of favourable conditions have been in place for UK exporters, helping to boost business and secure employment in the sector. It is also significant that the Eurozone manufacturing results, in contrast, have fallen to an eight-month low, making the UK more competitive. However, Sterling is forecast to be strong throughout April, so exporters will need to factor this in to their planning to avoid higher costs and continue to sustain business growth, particularly in their efforts to diversify and launch new products.”
Dorrien Peters, Partner and Head of Manufacturing at law firm, Irwin Mitchell,
commented on the results: “The manufacturing sector is continuing to deliver a strong performance, buoyed in recent months by booming global trade volumes and the strong economic performance of key trading partners including the US and the EU. I expect this to continue in the short term and result in the continuation of solid output figures. However, I anticipate that the uncertainty over how our future trading relationship with the EU will be structured will increasingly start to concern the sector, which with have an inevitable effect on confidence.”
Richard Powell, Partner, MHA MacIntyre Hudson,
said, “It’s encouraging to see sustained growth for the manufacturing sector in the UK, as a steady stream of orders and exports flow through. It is also reassuring to see the cost pressures on the sector slowing somewhat, as this has been a key concern over the past year. Despite the uncertainties caused by the ongoing Brexit negotiations and the spectre of a trade war between China and the USA strong results are delivering improved business confidence for UK manufacturers. From this strong start it will hopefully be a great year for the British manufacturing industry.”
- ENDS –
About Halo Financial
Halo Financial is a leading UK foreign exchange brokerage, offering a comprehensive range of services to individuals and businesses since its inception in 2005. The business prides itself on offering a flexible and personalised approach for each of its clients, simplifying the seemingly complex foreign exchange market to maximise savings in currency transactions, protect against currency risk and make money go further.
Staffed by qualified technical analysts, the company is authorised by the Financial Conduct Authority and HM Revenue and Customs.
“Excellent”, “Reliable”, “Professional”, “Knowledgeable”, and “Helpful”– just some of the great feedback received as a Gold Trusted Service Provider for Feefo.com. The team at Halo are proud that customers rate their services so highly and are happy to recommend to others. The company is always striving to provide the best possible service and to innovate services and products in line with customers’ ever-evolving needs.
Halo Financial won Best Customer Focus category in the 2016 Best Business Awards; received OPP Gold for Best Supporting Service; the Gold Award for Financial Support and Innovation from Relocate Magazine, Commendations in the 2016 and 2017 Moneyfacts Awards and has 5 out 5 Star Customer Gold Merchant Status via independent review website, Feefo.com, winning their Gold Trusted Service award.
Back to the Top