Manufacturers maintain momentum in May

Manufacturers have ‘posted further marked growth over May’, according to a Purchasing Managers Index survey released by IHS/Markit today.

Both domestic demand and exports were solidly increasing over the month, with a weaker sterling encouraging overseas buyers to snap up goods Made in Britain.

Jobs in factories increased for the tenth consecutive month in May, at the fastest rate since June 2014.

Justin Benson, Director of KPMG’s manufacturing practice, said: “The manufacturing sector PMI shows another solid performance this month, with its tenth month of improvement in operating conditions. The continuing strength of the domestic market was the primary driver, although an increase in export business played its part in this month’s score of 56.7. It’s also reassuring for manufacturers and those in the industry seeking work, as job creation for factory workers has been boosted, rising again for the tenth consecutive month.

“British industry is clearly taking advantage of the weaker sterling whether it be in EU or global markets. The global economy is growing and British manufacturers can go into the next 12 months with confidence, taking advantage of the market opportunities and demonstrating continued resilience. Brexit negotiations start later this month and manufacturers across the country will be ready to respond to change as they always do. However, politicians and negotiators must ensure that maintaining a healthy trade environment for British manufacturing and engineering businesses is high on their agenda.”