Manufacturing returns to growth for first time since July 2022

The UK’s manufacturing sector returned to growth in March for the first time in 20 months according to research by the S&P Global/CIPS UK manufacturing PMI survey.

The survey found that growth hit 50.3 in March, rising from 47.5 in February.

The figures show that this is the first time since July 2022 that the PMI rose above 50, indicating growth. Production and new orders increased, mainly driven by stronger domestic demand.

However, there was still a weak trend in new export orders. The consumer goods sector helped offset downturns in other areas, with production increasing for the first time since February 2023. Positive sentiment among manufacturers reached an 11-month high, with 58% of companies expecting their output to rise in the coming year.