
The IHS Markit/CIPS UK Manufacturing PMI increased to 54.9 in February of 2021 from 54.1 in January, beating market forecasts of 53.2.
- The rate of factory growth was one of the weakest since the recovery began in June 2020.
- Employment increased marginally and new orders returned to growth while export sales remained weak.
- Manufacturing companies often cited severe supply chain disruptions as a factor holding back production volumes.
- This was attributed to international shipping delays, strong worldwide demand for raw materials and Brexit-related trade frictions.
- Also, the scale of the downturn in vendor performance was the second-largest since the survey began in 1992 (exceeded only by those seen in April 2020).
- Some manufacturers commented on weaker sales volumes due to temporary closures among clients in the consumer services sector, especially hospitality businesses.