Make UK comment on PMI data

Commenting on the latest PMI data, Make UK Senior Economist, Fhaheen Khan, said:

“Industry is showing strong signs of a small bounce back following the depressing impact of Omicron restrictions late last year. Despite strong order books, however, there are early signals that the best days of recovery from the pandemic are behind companies as higher prices are passed on and will inevitably hit consumer spending, slowing down growth in the long term.

“Supply-chain pressures remain challenging but, for the first-time, businesses are reporting improvements in access to inputs and components which may ease the rate at which costs are rising. The big issue remains a continuing shortage of labour and skills which is about to get more expensive with a tax hike around the corner, making it difficult to deliver on orders even if sourcing raw materials is now relatively easier.”

Make UK has today called for Govt to delay the proposed increase in National Insurance on the back of its latest Manufacturing Monitor. This shows around three quarters of companies say the rise will impact on recruitment. Full report below.

https://www.makeuk.org/insights/publications/manufacturing-monitor-28022022