LONDON, April 3 (Reuters) - British manufacturers slipped deeper into decline in March but turned more optimistic about the future as cost pressures and supply chain problems eased off, a survey showed on Monday.
The S&P Global/CIPS UK manufacturing purchasing managers' index (PMI) fell to 47.9 from 49.3 in February, slightly below a preliminary reading for March of 48.0. Readings below 50 indicate a contraction in activity.
"The downturn in output was driven by declines in both the consumer and intermediate goods sectors. In contrast, investment goods production rose for the second month in a row," survey data company S&P Global said.
The survey's gauge of costs paid by manufacturing - a good guide to official producer input price inflation - eased to its lowest level since June 2020, below its long-run average before the COVID-19 pandemic.
Bank of England interest rate-setters are likely to view that as good news as they survey the extent of price pressures in Britain's economy in the run-up to their next decision in May. Financial markets were split last week on the prospect of another interest rate hike.
The PMI's gauge of future output rose to its highest level since February 2022.
Reports of falling delivery times from suppliers were the most widespread since the survey started in 1992, in sharp contrast with 2021 when manufacturers reported record delays thanks to the COVID-19 pandemic.
