Commenting on today’s PMI data, Fhaheen Khan, Senior Economist at Make UK, said:

“There appears to be no limit when it comes to rising costs for businesses as the latest figures show recent headwinds could topple manufacturers over the edge. Until now, an upbeat sentiment for consumption has carried the sector forward but, it is becoming more evident that we have reached the end of the post-pandemic boom. Manufacturers have become more cautious in recent weeks about passing on higher prices which implies worsening economic conditions are on the horizon.

“Manufacturers are seeing order books growth slow, and despite continuing to hire at speed, there is an air of uncertainty about the future as investment plans are scaled back and limited access to components restricting output growth. However, a strong backlog of old work should keep the gears running in the short-term.”