Stephen Cooper, head of manufacturing at KPMG UK, comments on the Markit/CIPS UK Manufacturing PMI figures published today. He said:
“Summer is over, a new term has begun and manufacturers are back to work with a bang, after another impressive PMI result. After the uncertainty of the summer months, it is hugely encouraging to see the growth in new orders, both domestic and overseas, driving higher employment rates and input buying volumes. While it’s tempting to put this down to the exchange rates, the domestic market was a significant contributor too, showing a bounce-back of confidence since the Brexit result.
“The pressure is now on the supply chain to keep pace with manufacturers’ increasing order books. Our research has suggested that only 13% of manufacturers have complete visibility past their Tier 1 suppliers, and whilst the order book is growing, they should seek to ensure that their supply chain is up to the challenge.
“The picture also looks encouraging throughout the major manufacturing nations, with Germany posting a three month high of 52.6, six of the Eurozone nations showing growth and Japan also showing signs of returning to growth, after a short contraction in August. All in all, we’re seeing a strong start to autumn for manufacturing globally.”
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