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    Home » Supply Constraints in UK Manufacturing Push Up Prices
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    Supply Constraints in UK Manufacturing Push Up Prices

    September 1, 20211 Min Read
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    Supply problems in the UK manufacturing sector linked to COVID-19 restrictions and the domino effects of Brexit led to “rapid price inflation” and rising input costs.

    • UK manufacturers continued to face increasing constraints caused by supply chain issues. The shortages of inputs and delivery delays disrupted the production schedules, slowing output growth.
    • The seasonally adjusted PMI dropped to a five-month low of 60.3, slightly below July’s 60.4. The PMI has signaled an improvement in operating performance in every of the last 15 months.
    • Rob Dobson, director of IHS Markit, stated that the rates of increase in both input costs and selling prices remained to record highs in August as rising demand led to constrained supply.
    • Average purchase prices increased at the fourth-fastest pace in the survey’s history, beaten only by the cost increases recorded during May, June, and July.

    The outlook for the UK manufacturing sector remained positive in August. Almost 66% of companies revealed that they project output to rise over the coming year.

    FTSE 250 Index up +0.70%, GDP USD up +0.12%

    Source: IHS Markit.

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