Manufacturing growth remains elevated in August: S&P Global

According to the latest report released by the S&P Global, the improvement recorded in the health of the sector reflects further rapid increases in output and new orders, with respective rates of expansion remaining sharp despite easing from the particularly elevated rates seen in June and July.

Improvements seen in customer demand resulted in growth of new orders, with firms raising production. In some cases, the relative stability of prices helped firms to secure new business, while there were also mentions of improving international demand, and new export orders rose for the fifth month running.

Although both input costs and output prices continued to rise in August, reports of competitive pressures meant that the respective rates of inflation eased markedly during the month.

While both continued to increase, the inflation rate slowed markedly from July to reach the weakest figure in four months.

Strong growth of new orders and softer cost pressures prompted manufacturers to sharply increase purchasing activities during August. Moreover, the rate of growth quickened for the fourth month running to the fastest since May, 2022.

Manufacturers remain optimistic that output will increase over the coming year, based on expectations of further improvements occurring in customer demand and new orders, the S&P Global noted./.