UK recovery on track despite manufacturing wobble The PMI survey found that input prices rose at their steepest month-on-month rate in more than 19 years, and the second sharpest in the survey's history. The rising cost of chemicals, feedstocks, metals, oil, plastics and transportation were blamed. Manufacturers passed only a small proportion of the cost increase on to customers through higher prices. At the same time, growth of new orders from both domestic and overseas clients stagnated, although weak demand from the eurozone was offset by new business wins in the US and Asia. Rob Dobson, senior economist at Markit, which produces the data with the Chartered Institute of Purchasing & Supply, said: "UK manufacturers continued to raise production and employment in February, building on the solid foundation seen so far at the start of 2012. This raises hopes that the sector will post an expansion over the first quarter. However, cost inflation resurfaced, picking up sharply on the back of high oil prices and associated increases in the costs of chemicals, energy and transportation. If this combination of rising costs and weak demand persists, sustaining output growth and job creation will become increasingly difficult. Howard Archer, chief UK economist at IHS Global Insight, said: "Manufacturing activity ... pointed to a loss of momentum compared to January and is a reminder that the economy still faces a hard slog to develop sustainable growth. A marginal drop in new orders and exports orders in February suggests that output is in danger of slowing further in March. Indeed, February's production increase was supported by a running down in backlogs of work. However, he said the data did point to a rebound from the 0.9pc contraction in the final quarter of 2011.