Investing.com - Activity in the UK manufacturing sector slowed last month, according to a closely watched business survey released on Thursday.
Research firm IHS Markit said its manufacturing purchasing managers’ index fell to 55.2 in February, compared to forecasts for a reading of 55.1.
The prior month’s reading was 55.3.
IHS Markit highlighted that the reading hit an eight-month low in February as slower output growth offset stronger new order inflows.
IHS Markit director Rob Dobson said the survey provided mixed signals over the health of the British manufacturing sector that suggested a 0.4% pace of growth.
Dobson pointed to the largest monthly gain since November in new orders and the fact that the expansion is continuing for its largest extent in more than a decade.
“Stocks of finished goods fell, raising the forward looking new orders to inventory ratio, while companies remained sufficiently confident in the outlook to take on more staff,” Dobson added.
On the inflation front, this expert noted that average input costs rose sharply during the month as manufacturers saw price increases in a broad range of commodities and raw materials. He indicated that part of the increase was passed onto clients.
“However, rates of inflation in both price measures were slower than those signalled in the prior survey month,” Dobson concluded.