United Kingdom: Manufacturing PMI bounces back
November 3, 2014
The manufacturing Markit/CIPS Purchasing Managers’ Index (PMI) rose from 51.5 in September to 53.2 in October. The figure marked the highest level since July, while September’s reading had marked the lowest level in 17 months. The index remains above the 50-threshold that separates expansion from contraction in business conditions, where it has remained since February 2013.
According to Markit/CIPS, October’s result marks a good start for the final quarter of the year. The pickup in the manufacturing sector came on the back of an improvement in domestic demand. This was partly offset from a decrease in new business from overseas, as exporters were affected by a weak Eurozone economy. Markit/CIPS added that “reports from companies mentioning slower inflows of new business from markets such as the US and China also paint a less than rosy picture for exports moving forward.”
Author: Dirina Mançellari, Senior Economist