UK Manufacturing Production Expands In December, Upturn Remains Subdued

With increased intakes of new work, efforts to reduce backlogs of work and higher employment, Britain's manufacturing production rose robustly in December 2021, while the upturn remains subdued, a report said Tuesday

LONDON, Jan 6 (UrduPoint / Pakistan Point News - 6th Jan, 2022 ) :With increased intakes of new work, efforts to reduce backlogs of work and higher employment, Britain's manufacturing production rose robustly in December 2021, while the upturn remains subdued, a report said Tuesday.

Despite the growth, "supply chain constraints and weak export performance constrained attempts to raise production further," said Rob Dobson, director at IHS Markit, a London-based global information provider, in the joint report by IHS Markit and CIPS, a UK-based global procurement and supply organization.

"Manufacturers indicated that logistic issues, Brexit difficulties and the possibility of further COVID restrictions (at home and overseas) had all hit export demand at the end of the year," Dobson added.

According to the report, overall, Britain's manufacturing sector saw further growth of production, new orders and employment in December 2021, with the seasonally adjusted IHS Markit/CIPS Purchasing Managers' Index (PMI) rising to 57.9, little-changed from November's three-month high of 58.1 and above the neutral 50.

0 mark for 19 months.

Manufacturing employment increased for the 12th successive month in December, with the rate of jobs growth close to November's three-month high. "Companies linked this to meeting improved demand, rising backlogs of work and efforts to address staff shortages," said the report.

"Capacity remained under strain, however," it added. "This was highlighted by a further increase in outstanding business, although the pace of expansion in work-in-hand volumes eased sharply to its lowest since February."Companies maintained a positive outlook as the majority of them forecast that production would increase over the coming 12 months. "Optimism reflected expectations of renewed global economic growth, planned investment and hopes for less disruption caused by COVID-19, Brexit and supply chain issues," the report noted.

Inflationary pressures remained elevated in December, the report said. "The rate of increase in factory gate selling prices accelerated to a fresh series-record high, as companies passed on (at least in part) rising costs to their customers."