LONDON – Britain’s manufacturing activity remained in contraction territory in February but a majority of industrialists expect output to rise over the next 12 months as inflationary pressures recede, the report shows. S&P Global monthly survey released Wednesday.
The sector PMI index rose to 49.3 from 47.0 in January. The “flash” estimate released last month put it at 49.2.
Some outlook indicators – particularly in the services sector – unexpectedly improved in February, but conditions remain difficult for manufacturers.
The new orders sub-index contracted for the ninth month, due to the cost of living crisis and weak external demand, particularly in key markets such as continental Europe, the United States and China, says S&P Global.
But the decline in new export business has slowed, thanks to stabilizing global economic conditions and the impact of China’s reopening.
There are signs that the worst of the inflationary push has passed, with the PMI indicator on input prices falling to its lowest level since July 2020.
(Suban Abdulla, Laetitia Volga, editing by Kate Entringer)
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