{"id":561117,"date":"2026-05-01T19:42:15","date_gmt":"2026-05-01T19:42:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/561117\/"},"modified":"2026-05-01T19:42:15","modified_gmt":"2026-05-01T19:42:15","slug":"uk-manufacturing-at-four-year-high-but-costs-rise-at-pandemic-pace","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/561117\/","title":{"rendered":"UK manufacturing at four-year high but costs rise at pandemic pace"},"content":{"rendered":"<p>\t\t\tFriday 01 May 2026 10:26 am\n\t\t\t<\/p>\n<p><img width=\"742\" height=\"495\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/10\/005-Uk-car-production.jpg\" class=\"media \" alt=\"Manufacturing has suffered yet another downturn in activity over September.\" fetchpriority=\"high\" loading=\"eager\" decoding=\"sync\"  \/>\t\tManufacturing costs soared in April. \t<\/p>\n<p>The UK manufacturing sector broke to a four-year record in April but the <a href=\"https:\/\/www.cityam.com\/economy-could-suffer-for-eight-months-after-iran-war-ends-minister-says\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">constraints triggered by the Iran war<\/a> threatened to upend growth prospects.<\/p>\n<p>The latest Purchasing Managers Index (PMI) from S&amp;P Global put the industry\u2019s reading at 53.7 \u2013 its best since May 2022. This marked its sixth consecutive month above the neutral 50.0 mark, which indicates if a sector is growing.<\/p>\n<p>In another major boost to manufacturers, staffing levels increased for the first time in 18 months.<\/p>\n<p>Production was boosted by the scaling up of output volumes from new order intakes and efforts to clear backlogs of work. Meanwhile, output growth increased across the consumer, intermediate and investment goods categories.<\/p>\n<p>Despite April\u2019s boon, Rob Dobson, director at S&amp;P Global Market Intelligence, warned it came with \u201cseveral\u201d catches.<\/p>\n<p>\t\tStrait of Hormuz threatens to upend manufacturing<\/p>\n<p>\u201cRestrictions on transit through the Strait of Hormuz are causing substantial disruptions to input deliveries, with supplier lead times lengthening to the greatest extent in almost four years,\u201d Dobson said. <\/p>\n<p>The Strait of Hormuz, a narrow waterway that connects the Persian Gulf with the Gulf of Oman and Arabian see, has been the key driver of inflationary pressures caused by the war in Iran.<\/p>\n<p>\t\t\t\t\tRead more<\/p>\n<p>\t\t\t<a class=\"read-more__link\" href=\"https:\/\/www.cityam.com\/manufacturing-exports-highest-in-four-years-despite-jobs-decline\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Manufacturing exports highest in four years despite jobs decline<\/a><\/p>\n<p>The strait is a vital shipping lane for not just oil, <a href=\"https:\/\/www.cityam.com\/not-just-oil-fertiliser-and-helium-are-at-risk-in-the-strait-of-hormuz-standoff\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">but also helium and fertiliser<\/a>, meaning the ongoing conflict threatens to clog up supply chains.<\/p>\n<p>\u201cThe resulting material shortages are exerting steep pressure on purchasing costs,\u201d Dobson added.<\/p>\n<p>Input prices \u2013 <a href=\"https:\/\/www.cityam.com\/uk-services-sector-sees-record-cost-inflation-spike-after-fuel-prices-surge\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">costs incurred by businesses<\/a> to acquire resources \u2013 surged at one of the \u201cfastest rates in the 34-year survey history\u201d.<\/p>\n<p>Dobson said the pace seen \u201crarely exceeded outside of the pandemic-related inflationary surge of 2021-2022\u201d.<\/p>\n<p>Alongside this, business optimism fell to its lowest level in a year during April, as the prolonged conflict continued to cloud outlook.<\/p>\n<p>Chris Barlow, head of\u00a0manufacturing\u00a0at MHA, said: \u201cIn the near term the\u00a0bigger concern\u00a0is\u00a0that supply chains are starting to creak again with longer delivery times, parts shortages and wider transport delays quickly hitting output, even if demand is\u00a0so far\u00a0holding up.\u201d<\/p>\n<p>\t\t\t\t\tRead more<\/p>\n<p>\t\t\t<a class=\"read-more__link\" href=\"https:\/\/www.cityam.com\/costs-up-demand-down-manufacturers-suffer-biggest-squeeze-since-2022\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Costs up, demand down: Manufacturers suffer biggest squeeze since 2022<\/a><\/p>\n<p>\t\tSimilarly tagged content: <\/p>\n<p>\t\t\tSections\t\t<\/p>\n<p>\t\t\tCategories\t\t<\/p>\n<p>\t\t\tPeople &amp; Organisations\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"Friday 01 May 2026 10:26 am Manufacturing costs soared in April. The UK manufacturing sector broke to a&hellip;\n","protected":false},"author":2,"featured_media":173586,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,192513,127968,14171,21492,192514,4229,1294,124233,192515,4626,1431,118947,164877,420,53651,169262,10420,467,50,11344,192516,22829,192517,1445,192518,174015,4767,56,1893,735,152933,54,55],"class_list":["post-561117","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-claims-inflation","tag-consumer-inflation","tag-core-inflation","tag-costs","tag-drinks-manufacturing","tag-economics","tag-economy","tag-eu-economy","tag-food-manufacturer","tag-global-economy","tag-inflation","tag-inflation-reduction-act","tag-inflation-risk","tag-keir-starmer","tag-london-stock-exchange","tag-manufacturer","tag-manufacturing","tag-markets","tag-news","tag-pandemic","tag-plastic-manufacturer","tag-pmi","tag-pmis","tag-rachel-reeves","tag-sp-global-flash-uk-pmi","tag-sps-purchasing-managers-index-pmi","tag-stock-market","tag-uk","tag-uk-economy","tag-uk-government","tag-uk-manufacturing","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/561117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=561117"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/561117\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/173586"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=561117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=561117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=561117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}