UK Manufacturing PMI Shows Improvement Amid Supply Disruptions

Friday, 1 March 2024, 09:30

The final manufacturing Purchasing Managers' Index (PMI) for the UK in February reached a 10-month high at 47.5, indicating a slight improvement, yet challenges persist with ongoing supply disruptions due to the Red Sea crisis. Both output and new orders continue to decline, impacting production capabilities and leading to higher costs. Policymakers may face pressure as inflation rises, complicating the timing of potential interest rate cuts.
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UK Manufacturing PMI Shows Improvement Amid Supply Disruptions

UK Manufacturing PMI Overview

The February final manufacturing PMI for the UK recorded a high of 47.5, showing a slight improvement from previous months. However, challenges remain as supply disruptions persist due to the ongoing Red Sea crisis.

Challenges in Production

Manufacturing activity is still experiencing a downturn, with both output and new orders declining. This has led to difficulties in production capabilities and increased costs, including inflated purchase prices.

Impact of Supply Disruptions

  • Raw material deliveries delayed
  • Higher shipping costs affecting export orders
  • Production volumes contracting for the twelfth successive month

S&P Global notes that the situation is challenging, with manufacturers facing tough choices amid the supply disruptions.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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