UK Manufacturing Costs Surge Amid Hormuz Strait Tensions

On May 1, Jin10 reported that a survey indicated a significant rise in cost pressures faced by UK manufacturers in April, influenced by tensions in the Hormuz Strait. According to Jin10, delivery delays have become the most widespread since mid-2022, highlighting the impact of the Iran conflict. S&P Global revealed that the UK's manufacturing PMI increased from 51.0 in March to 53.7 in April, slightly above the preliminary reading of 53.6. S&P noted that restrictions on ships attempting to pass through the Hormuz Strait have led to the most severe delivery delays in nearly four years. Although the survey showed increases in output and new orders in April, the growth rate of manufacturers' input costs reached its fastest pace since June 2022. Rob Dobson, Director at S&P Global Market Intelligence, stated, 'The growth in output is partly due to customers purchasing in advance to avoid anticipated price hikes and supply disruptions. As this process fades later this year, coupled with declining business confidence, the industry's growth may cool, while inflationary pressures remain high.'