UK May final manufacturing PMI 65.6 vs 66.1 prelim

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Latest data released by Markit – 1 June 2021

The preliminary report can be found here. The headline is a record high reading as manufacturing conditions continue to improve at an unprecedented pace in the UK amid the reopening, with output growth and new orders also rising sharply.

Markit notes that:

“The UK PMI surged to an unprecedented high in May, as
record growth of new orders and employment supported
one of the steepest increases in production volumes in the
near 30-year survey history. Growth is being boosted by
the unlocking of economies from COVID restrictions and
ongoing vaccination programs. This is being felt across the
globe, as highlighted by a record rise in new export business
during the latest survey month.

“The corollaries of this strong upsurge in industrial activity
are increased strain on supply chains and a build-up of
price pressures. Supplies of inputs into manufacturers
and finished goods on to clients are both being severely
disrupted by raw material shortages, port issues, COVID
restrictions, post-Brexit difficulties and market forces
as demand outstrips supply. Suppliers’ delivery times
subsequently lengthened to one of the greatest extents
on record, while input costs and selling prices both rose at
unprecedented rates. With little sign of supply pressures
receding, these price rises will become more visible to
consumers.”  

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