United Kingdom: Manufacturing PMI hits nine-month high in September
October 3, 2016
In September, the manufacturing sector recovered the ground it had lost after the EU referendum. The manufacturing IHS Markit/CIPS Purchasing Managers’ Index (PMI) increased from 53.4 in August to 55.4 in September, which marked the highest reading in nine months. This has brought the index further above the 50-threshold that separates expansion from contraction in business conditions.
September’s jump was due to a rebound in both production and new orders, according to IHS Markit/CIPS. Moreover, employment grew faster compared to the previous month. IHS Markit/CIPS analysts added that, “employment levels were moderately encouraging with the second monthly rise in a row in this post-referendum bounce. Firms sought to increase their competitive edge, with marketing activity and the launch of new product lines. It is difficult to say whether this solid rebound will be sustained, however, as there will potentially be more challenges and uncertainties ahead.”
Author: Dirina Mançellari, Senior Economist