Commenting on today’s PMI data, Ms Lee Hopley, Chief Economist at EEF, the manufacturers’ organisation, said:
“Manufacturers, unnerved in July by the referendum outcome, appear to have their mojo back in August. Business has carried on as normal and the weaker exchange rate is providing support for exporters in a broad range of markets in fairly short order. However, as anticipated, the fall in Sterling has also led to a rapid increase in input costs and the pass-through to inflation will surely follow.
“Today’s data provides a lot of relief that manufacturing activity is still on the up. But the heightened volatility in the indicator in the last couple of months still raises questions about whether sentiment has overshot somewhat and, rather than this pace of expansion being sustained, some moderation is likely in the coming months.”