- Prior was 59.2
- Business confidence at lowest since Oct 2020
- Rate of cost inflation at highest in six months
- Near-record rise in output costs
- New orders rose sharply in May
- Export orders rising at the slowest rate for four months
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said:
“A solid expansion of manufacturing output in May should help drive an increase in GDP during the second quarter, with production growth running well above the average seen over the past decade. However, the rate of growth has slowed as producers report ongoing issues with supply chain delays and labor shortages, as well as slower demand growth.
“A cooling in new orders growth was in part linked to customers pushing back on high prices, though also reflected shortages and growing concern about the outlook.
“Input cost pressures meanwhile intensified further during the month. Although delivery delays were the least widespread for 16 months, pricing power remained firmly in the hands of the supplier, with rising energy, wage and transportation costs adding to firms’ cost burdens. The result was the steepest rise in costs since November, feeding through to yet another near-record factory gate price increase and serving as a reminder that inflationary pressures remain worryingly elevated.”