United Kingdom: Manufacturing PMI inches down in September
October 1, 2015
The manufacturing Markit/CIPS Purchasing Managers’ Index (PMI) inched down from 51.6 in August to 51.5 in September. 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, September’s result came on the back of subdued growth in new orders. Moreover, the performance of the labor market remained lackluster and manufacturing job losses were recorded for the first time since April 2013. Cost pressures dropped further in September as companies reported lower commodity prices, especially for oil and oil-related costs. Consistent with that, costs fell at the steepest pace in 16 years in September. Nevertheless, the trend in output growth slightly improved over the previous month. Markit/CIPC analysts added that, “the ongoing malaise of the manufacturing sector will add to broader growth worries and supports dovish calls for a first rise in interest rates to be held off until industry returns to a firmer footing.”
Author: Dirina Mançellari, Senior Economist