United Kingdom: Manufacturing PMI improves modestly in March
April 1, 2016
The manufacturing Markit/CIPS Purchasing Managers’ Index (PMI) inched up from 50.8 in February to 51.0 in March, thus recovering from the lowest level in nearly three years. As a result, 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 March 2013.
According to Markit/CIPS, March’s slight pickup was mainly due to slight improvement in production and new orders. However, the manufacturing sector recorded job losses in March for the third consecutive month. Markit/CIPC analysts added that, “though the overall index showed a rise, the marginal increase will fuel concerns around strong supply chain continuity and any further impacts from major economic challenges such as the results of the Brexit vote.”
Author: Dirina Mançellari, Senior Economist