Manufacturing growth hits 5 month high

Input price inflation remained robust with material shortages driving a sharp increase in purchase costs. In turn, firms raised their selling prices at a faster pace.

The report indicates that higher customer numbers led to a rise in new orders with the rate of growth the strongest since last October.

This supported another expansion in output, and one which was solid overall.

Sub-sector PMI readings indicated that manufacturing posted the fastest rise in output in March, followed by services and agriculture respectively.

Wholesale and retail meanwhile recorded a decline in activity.

Rising output encouraged firms to increase their purchases and employment in March. Higher staffing allowed firms to complete outstanding work.

The rate of reduction was the second-fastest in the series, surpassed only by that seen in February.

Meanwhile, the sustained growth in new orders supported a sharp accumulation in the stocks of purchases. Despite the higher demand for inputs, supplier delivery times continued to shorten, although the degree to which lead times improved was the weakest in 10 months.

As a result of a shortage in the supply of raw materials, purchase prices rose at the joint second-sharpest rate in the series.

Higher staffing costs also contributed to a robust rise in overall expenses. The passing on of cost burdens to clients led output prices to increase a sharp and accelerated rate.