LONDON (dpa-AFX) - The UK manufacturing activity growth reached a near four-year high in April, driven by improvements in production, orders and employment, survey data from S&P Global showed Friday.
The final manufacturing Purchasing Managers' Index rose to a 47-month high of 53.7 in April from 51.0 in the previous month. The flash score was 53.6.
The index had remained above the neutral 50.0 mark for the sixth straight month.
Production increased for the sixth time in the last seven months in April. The scaling up of output reflected improved new order intakes, efforts to clear backlogs of work and a minor build up of finished goods stocks.
New export business advanced for the fourth straight month but at a slightly weaker extent than in March. Business optimism weakened to the lowest in a year as manufacturers expressed concerned about the impact of the war in the Middle East.
Supply chain pressures continued to build in April. Average vendor performance deteriorated to the greatest extent in almost four years, linked to ongoing complications caused by the Middle East war and restrictions on transit through the Strait of Hormuz, the survey showed.
Regarding prices, data revealed that input costs grew at the quickest pace since June 2022. Manufacturers raised their selling prices for the fifth successive month and at the fastest rate since November 2022.
'It should also be noted that the gain in production is partly the result of clients bringing forward purchases to mitigate expected price uplifts and supply disruptions,' S&P Global Market Intelligence Director Rob Dobson said.
'As this process unwinds later in the year, alongside declining business optimism, growth in the sector could cool while inflationary pressures remain on high heat,' Dobson added.
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