May Reflects Positive Growth for the UK Manufacturing Sector
The CIPS/Markit purchasing managers Index (PMI) was recorded at 57 with 50 being the marker point between growth and contraction.
This current growth rate of production expanding at a quarterly rate close to 1.5% has lead there to be great optimism for a full recovery to start to be noticed by the end of next year. Both large and small firms have seen consumer goods, machinery and equipment seeing marked expansions of new orders and output. Strong growth in this sector is also likely to give a boost to the rest of the economy with more jobs being taken in the manufacturing sector.
Deputy Chief Economist at EEF Neil Prothero said ‘The sector is firmly on track to expand for a 5th consecutive quarter, its strongest performance in four years’.
The Factory in North London
Exports orders have also showed signs of an uplift as the Markit survey has found that new export orders rose for the 14th consecutive month in May. Companies in the UK reported improved demand from the USA, Asia, Canada, Europe, the Middle East and New Zealand.
Rob Dobson senior economist at Markit said, ‘As manufacturing only makes up a small share of the UK economy, around 10 percent, these positive data are unlikely to shift the Bank of England on to the path of normalising monetary policy on their own’.
Jenny Holloway, CEO of Fashion Enter adds: “A three-year high for manufacturing! This is indeed music to my ears! After working in bulk garment manufacturing for the last five years at last the onshore revolution is really happening. Looking forward to the Made in Britain ‘Meet the Manufacturer’ event 11th & 12th June. Hope to see you there. We will be speaking and also have a stand.”
By Fred Anderson