Manufacturing supports UK output but coronavirus disrupts

Manufacturing production grew at its strongest pace for 10 months in February to keep the economy expanding at a steady pace but businesses reported disruption from the coronavirus, a benchmark survey showed.

Rising factory output offset a slight drop in services activity to keep the IHS Markit/CIPS purchasing managers' index unchanged at 53.3 from January. A score of more than 50 indicates expansion.

The result underlines the response to December's general election result, which gave businesses greater clarity about economic policy and unblocked the parliamentary logjam to allow Brexit to take place at the end of January. The economy spent 2019 in the doldrums and expansion stagnated in the fourth quarter as political uncertainty reached its peak.

Respondents to the survey said activity had picked up since the election and that customers were more willing to spend. However, new orders eased from January's 19-month peak as services expansion slowed.

Businesses also experienced disruption from the outbreak of coronavirus, also known as COVID-19, in China. Service providers reported slower overseas tourist bookings and cancellations of some orders from clients in China and elsewhere in Asia. Manufacturers said factory shutdowns in China hit supplies of parts and hit export sales. Suppliers' delivery times fell at the fastest pace since the survey began in 1992.

Tim Moore, associate director at IHS Markit, said: "The recent return to growth signalled by the manufacturing and services PMIs provides a clear indication that the UK economy is no longer flat on its back. While there are positive signals for UK businesses on the domestic front, the latest PMI findings highlight a number of concerns from an international perspective following the COVID-19 outbreak."