United Kingdom: Manufacturing PMI increases in July
August 1, 2015
The manufacturing Markit/CIPS Purchasing Managers’ Index (PMI) increased from 51.4 in June to 51.9 in July. 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 February 2013.
According to Markit/CIPS, July’s result came on the back of a further increase in manufacturing output. Nevertheless, the rate of job growth was only marginal. Markit/CIPS added that, looking forward, growth will heavily depend on the domestic market and on consumer demand in particular. The challenge therefore remains for the new government to take the necessary steps to revive manufacturing.
Author: Dirina Mançellari, Senior Economist