United Kingdom: Manufacturing PMI drops further in August
September 1, 2014
The manufacturing Markit/CIPS Purchasing Managers’ Index (PMI) fell from 54.8 in July to 52.5 in August, which is the lowest level that has been recorded since June 2013. Despite the drop, 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, a fall in the PMI index was mainly driven by a slowdown in inflows of new business as well as in new export orders. In addition, Markit/CIPS stated that, “it is also becoming increasingly evident that UK industry is not immune to the impacts of rising geopolitical and global market uncertainty, especially when they affect economic growth and business confidence in our largest trading partner the Eurozone.”
Author: Dirina Mançellari, Senior Economist