Stephen Cooper, head of industrial manufacturing at KPMG UK, comments on the Markit/CIPS UK Manufacturing PMI figures published today.
He said: “Manufacturers have had a bumper start to 2017, boosted by the exchange rate, which continues to make Britain competitive. A continued welcome increase in new orders, primarily from domestic sources, as well as overseas, has meant that the UK Manufacturing PMI has seen continuous growth for the last six months, which is great news for UK manufacturers and the economy.
“However these results also sound a note of caution and show evidence of the fastest rise in input costs for 25 years. Manufacturers have responded with an increase in selling prices, which may in turn begin to drive consumer price inflation. Continued high demand for raw materials is testing the capacity of some suppliers and leading to shortages in certain inputs. As ever, manufacturers should ensure they practice good supply and operational planning, and have an awareness of their extended supply chain.”
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