Britain’s manufacturers growing at fastest pace for 30 years as economy bounces back from pandemic
Britain’s manufacturers are growing at the fastest pace for 30 years as the economy bounces back from the pandemic.
Research group IHS Markit said its index of activity in UK factories jumped from 60.9 in April to 65.6 in May – the highest score on the purchasing managers index (PMI) since the survey started in 1992 and well above the 50 mark that separates growth from decline.
Business was boosted by a flood of orders and factories rushed to take on staff to keep up.
Thriving: Business was boosted by a flood of orders and factories rushed to take on staff to keep up
The figures came a day after the Organisation for Economic Cooperation and Development said it expects Britain to be the fastest-growing economy in the G7 this year and next, with 7.2 per cent in 2021 and 5.5 per cent in 2022.
Rob Dobson, at IHS Markit, said: ‘Growth is being boosted by the unlocking of economies from restrictions and vaccination programmes.’
But the report also said prices were rising ‘at unprecedented rates’ amid a shortage of raw materials and disruptions to supplies. It is feared that could raise inflation and force the Bank of England to raise interest rates.
Duncan Brock, at the Chartered Institute of Procurement & Supply, said: ‘We may not have seen price peak yet. This means bigger inflationary pressures for the wider economy and the country’s place in international trade as prices charged rose at record rates.’