United Kingdom: Manufacturing PMI drops in June
July 1, 2015
The manufacturing Markit/CIPS Purchasing Managers’ Index (PMI) dropped from 52.0 in May to 51.4 in June. Despite the decrease, the index remains firmly entrenched above the 50-threshold that separates expansion from contraction in business conditions. The index has been in positive territory since February 2013.
According to Markit/CIPS, June’s result came on the back of softer rates of expansion in manufacturing production and new orders. Looking forward, Markit/CIPS added that, “export trade is also likely to remain a drag on the economy, given the uncertainty surrounding the Greek debt crisis. This makes it difficult to gauge fully any possible knock-on effects for the UK’s trade with the euro area particularly in relation to impact from the euro-sterling exchange rate.”
Author: Dirina Mançellari, Senior Economist