Manufacturers linked higher volumes of new work to improving demand conditions and signs of reduced risk aversion among clients. Greater sales contributed to robust and accelerated rise in input buying in July, with the rate of expansion the fastest for five months.
July data meanwhile pointed to a slight rebound in input cost inflation from the 15-month low seen during June. Some manufacturers commented on higher commodity prices (especially metals). Despite increased input costs, factory gate price inflation moderated in July to its weakest since November 2016.