Commenting on today’s PMI manufacturing figures, Andy Hall, Head of Corporate Banking, Central Scotland at Barclays, said:

“Fears of a 2017 slowdown don’t yet seem to be feeding through to the manufacturing sector as it continues to report growing levels of investment and employment, as well as healthy order books.  Exporters have continued to take advantage of a weak sterling, which has kept British exports competitive on a global stage, and at a time when the world economy is showing signs of improvement.  However, rising cost pressures are still circling, not only from elevated import costs but also from the growing effect of domestic costs from sources such as energy and staffing which will all contribute to fuelling inflation.  Although manufacturers have resisted passing on these costs to date, the expectation of price rises is becoming more apparent in the sector.”