Stephen Cooper, Head of Industrial Manufacturing at KPMG UK comments on the latest Markit/CIPS Manufacturing PMI results, released today.
He said: “UK manufacturing sprang back to growth in April and the latest results have beaten expectations by rising to a three year-year high at 57.3, smashing the expected 54. This is a real boon for UK manufacturers as the weakened pound has helped exports, which is evidenced in the numbers. The PMI for the Eurozone reflected a similar story, with all but one of the eight nations recording highs, showing the quickest rate of growth for six years.
“The effects of the weak sterling exchange rate, as well as global commodity prices, has meant that input costs have risen once again, as well as increasing pressures on the supply chain. With continued price inflation from input costs, manufacturers need to manage their cost base carefully, in addition to their working capital, to mitigate any inventory build-up.
“While the good news from Europe may bring a smile to UK manufacturers’ faces, this could soon change as Brexit talks have the potential to muddy the waters.”
For media enquiries, please contact:
Jo Chileshe, KPMG Corporate Communications
T: +44 (0)121 232 3343
M: +44 (0)7919 211 803
Follow us on twitter: @kpmguk
KPMG Press Office: +44 (0)207 694 8773
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.