The purchasing managers' index for the British manufacturing sector increased sharply in May to the highest level in fourteen months as a robust domestic market led to faster growth of output and new orders, data released by Markit Economics and the Chartered Institute of Purchasing and Logistics (CIPS) showed Monday.
The seasonally adjusted Markit/CIPS manufacturing purchasing managers' index (PMI) climbed to a fourteen-month high of 51.3 in May from April's revised reading of 50.2. The index was forecast to rise to 50.1 from 49.8 originally reported in the previous month. Readings above 50 indicate growth, and those below point to contraction. The index increased for the second straight month.
The domestic market was the main driver of new order inflows, although new export business also contributed with a modest increase, the survey showed.
Manufacturing output increased across all the sub-sectors during the month, with growth registered by the consumer, intermediate and investment goods sectors. New orders received by British goods producers rose for the third consecutive month in May, led by a solid improvement in domestic market conditions.
Firms raised their staffing levels for the first time in four months, in line with the upturn in production. Input prices paid by manufacturers declined for the second month in a row, while output prices increased further as companies tried to protect margins and in response to higher demand.
"The UK manufacturing sector had a spring in its step in May, as a brightening domestic market led to faster growth of output and new orders," Markit Senior Economist Rob Dobson said.
"One of the more positive features of the expansion is its broad-base, with producers of consumer, intermediate and investment goods all reporting stronger output growth."
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.