United Kingdom: Manufacturing PMI slightly improves in November
December 1, 2014
The manufacturing Markit/CIPS Purchasing Managers’ Index (PMI) inched up from 53.3 in October to 53.5 in November, thus reaching the highest level since July. The index remains above the 50-threshold that separates expansion from contraction in business conditions, where it has remained since February 2013.
According to Markit/CIPS, November’s result marks a good start for the final quarter of the year. The pickup in the manufacturing sector came on the back of an improvement in domestic demand, while new export business continues to decline. Markit/CIPS added that “[a]lthough the pace of expansion remains below that seen at the start of the year, suggesting the sector will remain only a modest contributor to broader economic growth, it is positive to see the sector break its recent sequence of slower growth. Continued growth of employment, especially at SMEs, suggests that the recovery in the labour market is holding sway.”
Author: Dirina Mançellari, Senior Economist