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The recovery of the manufacturing sector in the United Kingdom continued in August, with the country's Purchasing Managers' Index reaching 52.5, up from 52.1 in July, an economy tracker showed.
According to the latest S&P Global PMI report, the European nation's rise in the manufacturing sector was driven by an increase in new orders and signs of easing price pressures.
The US-based credit rating agency also noted that the PMI of the United Kingdom in August was also the highest in 26 months.
Manufacturing Sector Expanding in UK
According to the report, manufacturing production in the United Kingdom increased for the fourth successive month in August, as companies raised output in response to rising new order intakes and efforts to clear previously agreed contracts.
S&P Global further highlighted that the rate of expansion remained substantial and close to July's near two-and-a-half-year high.
"The UK manufacturing sector remained a positive contributor to broader economic growth in August. The headline PMI hit a 26-month high of 52.5, reflecting solid expansions in output and new orders and the strongest jobs growth for over two years," said Rob Dobson, Director at S&P Global Market Intelligence.
He added: "The upturn is broad-based across manufacturing, with the investment goods sector the stand-out performer."
Level of Incoming Businesses Rise
According to the report, August witnessed the level of incoming new business rising for the fourth month in a row.
In the United Kingdom, the domestic market remained the principal spur of new contract wins, as new export orders decreased for the thirty-first consecutive month.
Companies who participated in the PMI survey linked lower intakes of new work from overseas clients to weaker demand from Europe, a slowdown in mainland China, freight delays, competitiveness issues caused by high shipping costs, global conflicts and political uncertainty.
"The trend in export orders a key cause for concern, with new business from overseas having fallen continuously since early in 2022," added Dobson.
The report pointed out that recent rebounds in output and new order volumes led to job creation at manufacturers.
