Investing.com - Activity in the UK manufacturing sector accelerated last month, according to a closely watched business survey released on Tuesday.
Research firm IHS Markit said its manufacturing purchasing managers’ index rose to 55.1 in March, compared to forecasts for a reading of 54.8.
The prior month’s reading was 55.0.
IHS Markit highlighted that output growth picked up, but was offset by slower increases in both new orders and employment.
On the price front, rates of inflation in input costs and output charges remained elevated despite easing slightly since February, it added.
“The latest PMI survey provided further evidence that UK manufacturing has entered a softer growth phase so far this year,” IHS Markit director Rob Dobson said.
Dobson indicated that the data was consistent with only a 0.4% to 0.5% gain in production volumes for the first quarter. “A considerable slide from the fourth quarter’s 1.3% increase,” he noted.
Despite the slowdown, this expert said there was generally positive news on whether growth will be sustained. He said that manufacturers were still reporting solid inflows of new work from both at home and abroad, while business optimism held steady at an elevated level.
“With cost inflationary pressures also moderating to provide some respite for margins, the sector looks set to make further slow and steady progress as we head through the spring,” Dobson concluded.