The UK manufacturing sector crossed the no-change mark into growth territory in March, according to the latest numbers from S&P Global.
Separate data, meanwhile, showed UK mortgage approvals increased in February.
The seasonally adjusted S&P Global UK manufacturing purchasing managers’ index reading was 50.3 points in March, up from 47.5 in February and beating the earlier flash estimate of 49.9.
The latest figure was above the 50-point no-change mark, meaning the UK manufacturing sector returned to growth territory.
S&P said that three of the PMI sub-components - new orders, output and suppliers’ delivery times - were consistent with an improvement in overall operating conditions during March.
‘The end of the first quarter saw UK manufacturing recover from its recent doldrums. Production and new orders returned to growth, albeit only hesitantly, following yearlong downturns, with the main thrust of the expansion coming from stronger domestic demand. The upturn in demand also led to improved confidence among manufacturers, with positive sentiment hitting an 11-month high,’ said S&P Global Market Intelligence Director Rob Dobson.
‘Potential blockers remain such as continued weak export performance and supply chain stresses, with the neighbouring EU market the main drag on overseas demand and the Red Sea crisis still impacting supply chains. Signs from the survey that the impact of both of these factors is easing is therefore welcome news.’
The manufacturing survey draws upon a panel of 650 firms. Responses to the survey are collected in the second half of the month.
Meanwhile, UK mortgage approvals increased on a monthly basis in February, while the effective interest rate on newly drawn mortgages fell, according to numbers from the Bank of England.
Net mortgage approvals for house purchases rose to 60,400 in February from 56,100 in January. This was higher than FXStreet-cited market consensus of an increase to 56,500 approvals.
Net approvals for remortgaging also increased to 37,700 from 30,900.
The effective interest rate on newly drawn mortgages eased to 4.90% in January from 5.19% in January.
The BoE’s own benchmark interest rate is currently 5.25%, where it has stood since August.
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