UK manufacturing contracts at slowest pace in a year

| June 1, 2009 | 0 Comments
”UK

The latest CIPS/Markit purchasing managers’ index (PMI) has revealed some good news for Britain’s manufacturing industry today after a rise was noted in new manufacturing orders.

According to the PMI, new manufacturing orders increased to a 14-month high, while UK manufacturing contracted at its slowest pace in a year in May.

May marked the third consecutive month of improvement with the PMI up to 45.4, from an upwardly revised 43.1 the previous month. The figure for May exceeded analysts expectations.

However, the figures must be read with caution since any figure below 50 still represents a contraction.

Markit economist, Rob Dobson, comments: “Although the index remains below levels consistent with outright recovery, this is a further sign that the downturn in UK manufacturing is easing.”

Howard Archer, economist at IHS Global Insight, described the figures as “welcome news” for the sector.

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