Cara Haffey, Leader of Industry for Industrials and Services at PwC UK, said:
“The UK PMI Manufacturing PMI remained firmly in expansion territory in August at 51.7, marking a tenth consecutive month above the 50-point threshold. While the pace of expansion eased slightly compared with July, the industry continues to benefit from rising output, new orders and export demand.
“The latest data points to a sector that is still moving in a positive direction. Encouragingly, business optimism has strengthened to a six-month high and employment growth has reached its fastest pace in two years, reflecting growing confidence among manufacturers in the UK's industrial outlook. While confidence is strengthening and cost pressures continue to ease, businesses remain focused on the factors that will determine whether this recovery can be sustained and translated into long-term competitiveness.
"Energy affordability remains high on that list. Our research shows that nearly three-quarters of manufacturers think energy issues are negatively impacting their investment plans in the UK. With businesses looking to capitalise on improving demand, addressing industrial energy costs will be critical if the UK is to translate optimism into long-term manufacturing growth and investment.
"As government considers its priorities, the focus for many businesses will be on how quickly policy commitments translate into lower costs, greater certainty and stronger incentives for investment."
Ends
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