United Kingdom: Manufacturing PMI drops in July, remains anchored in expansion territory
August 5, 2014
The manufacturing Markit/CPIS Purchasing Managers’ Index (PMI) edged down from 57.2 in June to 55.4 in July, which is the lowest level in a year. Despite the drop, the index remains firmly anchored above the 50-threshold that separates expansion from contraction in business conditions, where it has remained since February 2013.
According to Markit/CIPS, the index has been showing, “an improvement in operating conditions throughout the past 17 months.” Markit/CIPS added that manufacturing continues to expand, although the slowdown in growth in the intermediate goods and investment goods sectors prompted the index to lose some ground in July. That said, job creation was recorded again in July, which is a sign of potential increase in future demand and orders.