UK manufacturing grows despite coronavirus pressures

UK manufacturing grows despite coronavirus pressures

March 2, 2020 0 By mykenyancareers
UK FLAG - UK manufacturing grows despite coronavirus pressures
That was the highest level since April 2019 and compared with a neutral print of 50.0 in January. A reading above 50 indicates growth/FILE

London, United Kingdom, Mar 2
– UK manufacturing activity rebounded in February to a ten-month high on easing
Brexit uncertainty, but supply chains were nevertheless pressured by
coronavirus concerns, data showed Monday.

The IHS Markit UK
Manufacturing purchasing managers’ index (PMI) stood at 51.7 last month, the
group said in a statement.

That was the highest level
since April 2019 and compared with a neutral print of 50.0 in January. A
reading above 50 indicates growth.

“Growth of manufacturing
output accelerated… as domestic demand continued to recover on the back of
reduced political uncertainty,” IHS Markit said in a statement.

“Supply chain
disruptions were rapidly emerging, however, as the outbreak of COVID-19 led to
sizeable raw material delivery delays, rising input costs and increased
pressure on stocks of purchases.”

The research group added that
“companies reported reduced new work intakes from Asia — especially China
— due to the COVID-19 outbreak”.

Despite those concerns,
manufacturing output regained composure last month after the convincing general
election victory for Prime Minister Boris Johnson’s Conservatives in December
that enabled the UK to finally leave the European Union on January 31.