Growth in manufacturing activity picked up somewhat in April thanks to a rise in orders, but it remains hampered by supply difficulties and the war in Ukraine, according to data published on Monday by the firm S&P Global (ex -IHS Markit).
The composite index which measures the performance of the sector on the basis of data collected from a panel of 400 companies reached 55.7 points against 54.7 in March.
However, this level of growth remains lower than that recorded in February, which stood at 57.2 points thanks to the improvement in the health situation.
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An index above 50 indicates growth in activity, while a figure below 50 indicates contraction.
"The growth was based in particular on an acceleration in the increase in the overall volume of new orders, as customers anticipated their orders in order to protect themselves against further price increases and shortages," the firm said in a press release.
With raw material supply difficulties and rising energy prices, corporate purchasing costs have already increased “at their strongest pace since February 2011,” according to S&P Global.
They passed on these increases to their selling prices, which show “a record inflation rate”.
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Joe Hayes, economist at S&P Global quoted in the press release, thus predicts a weakening of demand in the coming months which, coupled with inflation, risks “to weaken growth”.
In terms of employment, hiring continued to increase in April in the sector, for the fifteenth consecutive month.
After experiencing its largest decline since the start of the Covid-19 pandemic in March, the level of confidence of the companies surveyed has also recovered.
Faced with the uncertainties linked to the geopolitical context and the containment measures in China, it nevertheless remains “below its historical average”, specifies S&P Global.
