LONDON, May 3 Reuters British factory activity edged up in April after slowing to its weakest in just over a year in March following Russia39;s invasion of Ukraine, but manufacturers were wary about the outlook as costs leapt and demand faltered, a survey showed on Tuesday.
The SP GlobalCIPS manufacturing Purchasing Managers39; Index PMI rose to 55.8 in April from March39;s 13month low of 55.2, a slightly bigger rise than the increase to 55.3 in an earlier 39;flash39; estimate.
Some 55 of manufacturers expected output to rise over the coming year, but this reflected the weakest outlook since December 2020 as domestic orders grew by the least since January 2021 and export orders fell by the most since July 2020.
Lacklustre demand from the EU was linked to longer delivery times, customs checks and higher shipping costs postBrexit, SP Global said.
Higher prices also played a role in reducing demand both at home and abroad, businesses said.
More than 60 of manufacturers raised prices in April giving a record inflation balance after the cost of inputs such as energy and raw materials jumped by the secondbiggest amount on record.
The Bank of England is closely eyeing surging prices that have already pushed consumer price inflation to its highest in 30 years, and most economists expect it to raise interest rates to 1 on Thursday, the highest since 2009.
The BoE is concerned that businesses passing on higher costs could make inflation slow to fall, even after energy…