United Kingdom: Manufacturing PMI picks up slightly in January
February 2, 2015
The manufacturing Markit/CIPS Purchasing Managers’ Index (PMI) rose from 52.7 in December to 53.0 in January. As a result, the index remains above the 50-threshold that separates expansion from contraction in business conditions, where it has been since February 2013.
According to Markit/CIPS, in January the marginal expansion was mainly driven by a pickup in domestic activity. In addition, the external sector also showed some signs of improvement. New export orders posted the first gain in five months. Markit/CIPS added that, “[i]t still looks as if lackluster demand from the eurozone in particular remained a headwind for British manufacturers. This could soon change, however, if quantitative easing by the ECB has the desired effect of boosting demand in the euro area.”
Author: Dirina Mançellari, Senior Economist