January 2018 UK Markit/CIPS manufacturing PMI 1 February 2018

  • Prior 56.3
  • Input prices 76.8 vs 66.3 prior. Highest since Feb 2017
  • Growth of output and new orders slow further
  • Input cost and selling price inflation accelerate

Hardly made a dent in cable, which dropped back to 1.4250

Prices are once again the focus;

One consequence of the upturn was an upsurge in price pressures. On the cost side, increased demand for inputs led to improved supplier pricing power and shortages of raw materials, resulting in a marked acceleration in input cost inflation.Purchase prices rose at the fastest rate in 11 months and to one of the greatest extents in the survey history. Companies reported a wide range of raw materials and commodities as up in price, including chemicals, food products, metals, oil, paper and plastics. Part of the increase in costs was passed on to clients in the form of higher selling prices. January saw the steepest increase in output charges since April of last year.

Ryan Littlestone

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