United Kingdom: Manufacturing PMI drops in April
May 4, 2015
The manufacturing Markit/CIPS Purchasing Managers’ Index (PMI) fell from 54.0 in March to 51.9 in April. March’s figure had marked a seven-month high. As a result, the index is now closer to the 50-threshold that separates expansion from contraction in business conditions, the index has held above this threshold/in positive territory since February 2013.
According to Markit/CIPS, April’s weak result came on the back of a sharp deceleration in both order books and production. Growth in the sector remains broadly consumer-led, while the investment and exports pictures are subdued. Markit/CIPS added that, “a key challenge for the next government is to revive manufacturing and help it at least regain its pre-crisis peak, as any signs of rebalancing the economy towards manufacturing and exports remain frustratingly elusive.”
Author: Dirina Mançellari, Senior Economist