Rise in UK manufacturing activity
There is some good news for the economy today after a rise has been reported in manufacturing activity.
For the first time in almost 18 months, there was a growth in activity, benefiting unexpectedly from an influx of new orders – the fastest since November 2007.
The headline manufacturing purchasing managers’ index (PMI) rose from 47.4 in June to 50.8 in July. The 50.8 reading is well above economists’ expectations of 47.7 and marks a sharp rebound from the record low of 34.9 recorded in November.
The figures will lead to many believing that the worst of the recession is over.
Rob Dobson, senior economist at survey compilers Markit Economics, comments: “The turnaround signalled by PMI data during 2009-to-date has been remarkable. The base of the recovery remains broad, which should help with sustaining gains into Q4.”
However, “employment is still contracting rapidly as the sector is still reeling from the depth of the recession“, added Mr Dobson.