Latest data released by Markit/CIPS – 2 August 2021
The former is driven by self-isolation restrictions, contributing to marked lengthening of supplier lead times and delivery delays. Markit notes that:
“Although July saw UK manufacturers report a further
month of solid growth, scarcities of inputs, transport and
labour are stifling many businesses.“On one hand, manufacturers are benefiting from reopening economies. This is leading to solid inflows of new
work from both domestic and overseas markets, including
the US, the EU, China and the Middle-East.“On the other, the recent surge in global manufacturing
growth has led to another month of near-record supply
chain delays, exacerbated by factories and their customers
building up safety stocks. Some firms also noted that post-Brexit issues were still a constraint on efforts to rebuild sales
and manage supply and distribution channels to the EU.“Demand outstripping supply is also driving up prices. Input
costs again rose at a near survey-record pace, leading to a
near-record increase in manufacturers’ selling prices. Amid
growing indications that many supply chain disruptions
and raw material shortages are unlikely to be fully resolved
until 2022, the outlook remains one of constrained growth
combined with high inflation for the foreseeable future.”