United Kingdom PMI April 2017

United Kingdom

United Kingdom: Manufacturing sector surges in April

May 2, 2017

The manufacturing IHS Markit/CIPS Purchasing Managers’ Index (PMI) soared from 54.2 points in March to 57.3 points in April, marking a three-year high and flummoxing analysts, who had expected a slight decline. The index remains comfortably above the 50-point threshold that separates expansion from contraction in the manufacturing sector, where it has been for nine consecutive months.

April’s notable uptick was driven by faster growth in output and new orders, underpinned by buoyant business confidence. Firms enjoyed healthy domestic demand, while exports also grew thanks to a weak sterling and improved external conditions, with the U.S., Brazil, Africa and Europe purchasing more British goods. In response to the fairly balmy economic scenario, businesses ramped up hiring efforts in April. Input costs continued to rise at a significant rate, although price pressures have abated somewhat from January’s high, and firms consequently raised output charges.

According to Rob Dobson, Senior Economist at IHS Markit, “the upturn in the manufacturing sector represents some welcome good news […]. The big question is whether this growth spurt can be maintained, especially given the backdrop of ongoing market volatility and a number of political headwinds such as elections at home and abroad. Other surges seen since the middle of last year have generally proved short-lived, as weak wage growth sapped consumer spending. If this happens again it will inevitably constrain manufacturing.”

FocusEconomics Consensus Forecast panelists see fixed investment dropping 0.2% in 2017, which is unchanged from the previous month’s estimate. For 2018, the panel expects fixed investment to rise 0.4%.


Author:, Economist

Sample Report

Looking for forecasts related to PMI in United Kingdom? Download a sample report now.

Download

United Kingdom PMI Chart


United Kingdom PMI April 2017

Note: Markit/CIPS United Kingdom Purchasing Managers’ Index (PMI). A reading above 50 indicates an expansion in business activity while a value below 50 points to a contraction.
Source: Markit and CIPS.


United Kingdom Economic News

More news

Search form