United Kingdom: Manufacturing PMI jumps up in October
November 2, 2015
The manufacturing Markit/CIPS Purchasing Managers’ Index (PMI) jumped from 51.8 in September to 55.5 in October, thus recording the best result since June 2014. 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, October’s improvement was the result of an acceleration in output growth and an increase in new orders. Moreover, the survey pointed to an improvement in the labor market. Indeed, employment in the manufacturing sector increased for the 13th consecutive month. Nevertheless, price pressures remained on the downside in October. Markit/CIPC analysts added that, “with global raw material prices on a continuing downward path, purchasers increased their levels of stocks at a rate not seen for almost five years. So, if other sectors follow suit, there will be more conviction that UK economic recovery is at last ongoing and sustainable.”
Author: Dirina Mançellari, Senior Economist