The UK manufacturing sector activity was revised down in June, the final report from IHS Markit confirmed on Thursday.
The seasonally adjusted IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) was revised down to 63.9 in June versus 64.2 expected and 64.2 first estimate.
Key points
Supply-chain stresses lead to record price increases.
Robust growth of output, new orders and employment continues.
Rob Dobson, Director at IHS Markit, commented on the survey
“UK manufacturing-maintained a near survey-record pace of expansion at the end of the second quarter, as the reopening of economies at home and overseas supported increased production, new orders and employment. Solid business confidence and rising backlogs of work also suggest that the current upturn has further to run.”
“The sector is still beset by rising cost inflationary pressures, however, as Brexit-related trade issues exacerbated global supply chain delays. The resulting widespread raw material shortages drove purchase prices up to the greatest extent on record, leading to an unprecedented steep rise in selling prices. There are also widespread reports of supply issues causing disruptions to production schedules and impeding the re-building of buffer stocks.”
GBP/USD reaction
The GBP bears remain in control, now testing weekly lows near 1.3790 on BOE Governor Andrew Bailey’s comments and UK Final PMI.
The spot was last seen trading at 1.3796, down 0.22% on the day.