- Prior 47.5
Following the revision, the UK manufacturing sector posts a marginal growth to wrap up Q1. Both output and new orders increased with business optimism also improving to an 11-month high. The good news at least is that domestic demand conditions are picking up but we'll have to see if that can keep up consistently in the months ahead. S&P Global notes that:
“The end of the first quarter saw UK manufacturing recover from its recent doldrums. Production and new orders returned to growth, albeit only hesitantly, following yearlong downturns, with the main thrust of the expansion coming from stronger domestic demand. “The upturn in demand also led to improved confidence among manufacturers, with positive sentiment hitting an 11-month high. Some 58% of companies expect their output to rise over the coming year.
"We're also seeing signs of stabilisations in employment and purchasing activity alongside a move towards lowering safety stocks, all signs that manufacturers are tentatively optimistic about the road ahead.
"Potential blockers remain such as continued weak export performance and supply chain stresses, with the neighbouring EU market the main drag on overseas demand and the Red Sea crisis still impacting supply chains. Signs from the survey that the impact of both of these factors is easing is therefore welcome news.”
