United Kingdom: Manufacturing PMI jumps in December
January 3, 2017
The manufacturing IHS Markit/CIPS Purchasing Managers’ Index (PMI) jumped from 53.6 in November to 56.1 in December, the highest reading since June 2014. The index remains well above the 50-point threshold that separates expansion from contraction in the manufacturing sector.
December’s increase in overall operating conditions was due to an improvement in domestic and overseas demand. Moreover new orders grew and new export business rose for the seventh consecutive month in December. According to HIS Markit/CIPS analysts, “this fizz in new orders signals good news for UK manufacturers which has previously been hit by uncertainties following the EU referendum, and the sector looks set to reach a more robust growth path at the start of 2017.”
Author: Dirina Mançellari, Senior Economist