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The
S&P Global UK Manufacturing Purchasing Managers' Index rose to
52.1 from 50.9, its highest reading since July 2022 and up from
a preliminary flash reading of 51.8.
Output and new orders increased at the fastest rate since
February 2022, while manufacturers added staff for the first
time in 22 months.
Other business surveys - such as one published by Lloyds on
Thursday - have shown a similar boost to business sentiment
following the July 4 election result, which delivered a big
majority for the Labor Party. Strengthening cost pressures
marred an otherwise positive picture, with the survey's gauges
of both input and output prices reaching their highest levels
since the first half of 2023.
The Bank of England - which is monitoring price pressures in the
economy - is due to announce its interest rate decision for
August at 1100 GMT. Economists think it is likely to cut
borrowing costs for the first time since 2020 and markets see a
roughly 65% chance of a quarter-point cut.
"UK manufacturing has started the second half of 2024 on an
encouragingly solid footing," said Rob Dobson, director at S&P
Global Market Intelligence.
"Inflationary pressures remain a blot on the copybook," Dobson
added, citing the ongoing Red Sea crisis and freight issues.
International shipping has been disrupted since November by
attacks launched by Yemen's Houthi militants, an Iran-aligned
group who say the attacks are in solidarity with Palestinians in
the war between Israel and militant Islamist group Hamas.
Many vessels have opted to avoid the Red Sea route to the Suez
Canal, taking the longer journey around the southern tip of
Africa instead.
(Reporting by Andy Bruce; Editing by Toby Chopra)
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