The UK manufacturing sector grew fastest than expected in February as demand increased and global supply chain issues eased.
The UK CIPS UK Manufacturing PMI for February came in at 58, beating economist estimates of 57.3.
PMI readings above 50 signal expansion.
Manufacturing activity was helped higher by the end of lockdowns but Brexit ‘obstacles’ were still hurting export growth.
“The growth rate of UK manufacturing production accelerated and managed to reach a seven-month high in February, thanks to an increase in domestic demand, fewer raw material shortages and easing of global supply chain pressures,” Walid Koudmani, chief market analyst at financial brokerage XTB.
“While inflation remains elevated and a key issue for the economy, it appears the situation is starting to ease and despite ongoing geopolitical tensions, we could be seeing a continuation of this trend moving forward which could further speed up the post pandemic recovery.”
Despite strong growth in the sector, there was still concerns about inflation and the future impact of higher prices one the sector.
“Elevated prices remained with inflationary costs still risingat both ends of the supply chain. Commodities such as food, raw materials and transportation were more expensive andmeant firms’ charges to customers rose again as they havein each month for almost six years,” said Rob Dobson, Director at IHS Markit.