Business output on the increase
After its prolonged battering, the UK’s manufacturing sector may be about to turn a corner.
According to the Purchasing Managers’ Index (PMI) from the Chartered Institute of Purchasing and Supply (CIPS), the rate of decline in new manufacturing orders slowed during June.
Output showed its first increase since March of last year.
The overall CIPS index for manufacturing climbed from 45.4 in May to 47 last month. Although any figure below 50 still indicates contraction, the rate of decline in business activity has slowed, and the CIPS is predicting that the data look like improving during the coming months.
David Noble, chief executive of the CIPS, commented: “The latest PMI data suggests that after months of gloom and doom, there are some signs of relief for the UK manufacturing sector.
“Most encouragingly, purchasing managers said that output, which is a key component of the PMI index, has risen for the first time in 15 months indicating that the sector may finally be coming out of recession.”