Conditions in the manufacturing sector improved at an unprecedented rate in May, as output growth strengthened and new orders rose at their quickest pace in the near three-decade survey history. Looser pandemic restrictions and high levels of pent-up demand meant that the rapid revival in labour market conditions also continued, with staffing levels rising at a record pace.

The seasonally adjusted IHS Markit/CIPS Purchasing Managers’ Index (PMI) rose to 65.6 in May, up from 60.9 in April, above July 1994’s previous record high of 61.0. The PMI has now signalled improvement in each of the past 12 months. Manufacturing production also rose at one of the quickest rates in the series history. In fact, over 70% of companies forecast that production will be higher in one year’s time, compared with only 3% expecting a decline.

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