Manufacturing swings to growth – London Business News | Londonlovesbusiness.com

Manufacturing has swung back to growth as production surged in May which is the quickest pace since April 2022.

In May the S&P Global/CIPS UK manufacturing PMI survey rose to 51.2, any reading above 50 shows the sector is growing.

Rob Dobson, director at S&P Global Market Intelligence, said, “May saw a solid revival of activity in the UK manufacturing sector, with levels of production and new business both rising at the quickest rates since early 2022.

“The breadth of the recovery was also a positive, with concurrent output and new order growth registered for all of the main subindustries (consumer, intermediate and investment goods) and all company size categories for the first time in over two years.

“While the latest upturn was dependent on a strengthening domestic market, there were signs of overseas demand also moving closer to stabilisation.”

Caroline Litchfield, partner and head of manufacturing and supply chain at independent law firm Brabners, said, “May could well prove to be a turning point for UK manufacturing after almost two years of weak output.

“While we are by no means out of the woods yet, manufacturers will be cautiously optimistic for the future given growth in the wider economy, inflation falling to manageable levels and the potential for interest rates to be cut in the coming weeks.

“A confirmed election date is also likely to boost business and consumer confidence, and firms will be hopeful of order books benefiting as a result.

“Longer term though, UK makers will want to see any incoming government setting out how it will help address the skills gap within the industry and support a shift to the modern, sustainable methods of manufacturing which will be the pillars of future growth.”