A separate survey produced by Markit and also published on Thursday showed that United Kingdom manufacturing PMI climbed to ten-month high in August.
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The pound leapt by more than a cent against the dollar to $1.3241 immediately after the data were released.
Companies also raised their purchases in August, some of which were placed directly into stock that resulted in a rise in pre-production inventories.
But he said other manufacturers also struggled last month.
New order volumes moved closer to stabilisation, with the latest reduction the least marked since May, the survey found.
He said there were still widespread reports that Brexit uncertainty was dampening demand, with total new order volumes continuing to fall in August.
“Indian manufacturers enjoyed a solid improvement in operating conditions during August”, according to the report.
Eurozone PMI’s released at the same time were decidedly lacklustre compared to the United Kingdom, after they came out below 50 and not higher than forecast, no doubt adding to the chagrin already being felt in Brussels at Britain’s continued resilience in the face of Brexit, an event expected to handicap the economy for years to come.
We rather suspect the August services PMI, due Monday, will also show a bounce back too, enabling the Markit-calculated composite PMI to depict a rebound from 47.3 in July, as all three key sectors of manufacturing, construction and services display a short-term post-Brexit referendum recovery. A reading above 50 shows growth in the sector.
Staffing levels rose again in the Irish manufacturing sector during August. “UK manufacturers need to continue to use the momentum of their newfound competitive price for as long as possible, and, as ever, to continue to practice careful management, and accurate forecasting of the supply chain”.
According to the latest Markit Purchasing Managers Index, UK manufacturing climbed to its fastest rate in 10 months following a decline after the European Union referendum.
The sub-index for production rose to 52.6 – up from 52.1 in July – and the highest reading so this year, while the sub-index for new orders reached 51.3.
However, sterling’s plunge to 31-year lows since the Brexit vote has ramped up costs for construction firms, as input cost inflation grew for the third month in a row and hit its highest level for five years.
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The value of the pound has jumped after a survey indicated the UK’s manufacturing sector rebounded sharply in August.
