UK’s manufacturing activity growth slows slightly less than initially estimated in August - IHS Markit

The latest report by IHS Markit revealed on Wednesday the seasonally adjusted final IHS Markit/CIPS Purchasing Managers’ Index (PMI) came in at 60.3 in August, up slightly from the “flash” figure of 60.1 and down marginally from July's reading of 60.4. The latest reading pointed to the weakest expansion in the manufacturing sector since March.

Economists had forecast the index to stay unrevised at 60.1.

According to the report, shortages of inputs and delivery delays disrupted production schedules, leading to slower output growth, and also resulted in marked gains in input prices. Manufacturing output rose the least since February, while incoming new business continued to rise at solid rates, reflecting increased inflows from both domestic and overseas markets. Elsewhere, employment rose for the eighth month in a row and to one of the greatest extents in the survey history, albeit also the slowest since April. Average supplier lead times lengthened to the second-greatest extent in the survey history during August. On the price front, average purchase prices rose at the fourth-fastest rate in the survey history, while average selling prices also increased at one of the quickest rates on record.