LONDON, June 1 (Xinhua) -- Britain's manufacturing sector continued recovery in May, but is faced with the challenges of high input price inflation and supply chain constraints, data from the S&P Global showed on Monday.
The seasonally adjusted S&P Global UK Manufacturing Purchasing Managers' Index (PMI) rose to a four-year high of 53.9 in May, up slightly from 53.7 in April, according to S&P Global.
Rob Dobson, director at S&P Global Market Intelligence, said May saw the UK manufacturing upturn gather pace, as growth of production and business optimism both rose to three-month highs.
But he cautioned the sustainability of the upturn remains in doubt, noting that recent upturn in new order intakes that is driving the expansion in output is heavily reliant on both manufacturers and their clients front-loading purchases to mitigate expected war-related price increases and supply chain disruption.
"This bounce will fade once customers have built up sufficient safety stocks," he added.
The rate of increase in purchasing costs for UK manufacturers accelerated to a near four-year high, reflecting increased prices for chemicals, electronics, energy, foodstuff, fuels, plastics, metals, packaging, paper and timber.
They attributed the price hikes to the conflict in the Middle East, commodity market gyrations, geopolitical strife, supply chain issues, material shortages, tariffs, rising labor costs and higher taxes. ■