1 May 2015
UK Manufacturing growth slows in April
FXStreet (Mumbai) - The seasonally adjusted Markit/CIPS Purchasing Manager’s Index (PMI) printed at 51.9 in April, a seven-month low and below the revised March reading of 54.0.
The incoming business growth slowed, led by a decrease in the volume of new work received from abroad. The sterling euro exchange rate was also hitting competitiveness. Moreover, the slowdown in the activity was largely due to the intermediate goods sector, which saw output and new orders fall back into contraction.
Manufacturing employment increased for the twenty-fourth successive month in April. Meanwhile, Price pressures remained on the downside in April. Average input prices declined for the eighth successive month during April, while the output prices decreased for the fourth straight month, with the rate of deflation the steepest since September 2009.
Rob Dobson, Senior Economist at survey compilers Markit, “Coming on the back of weaker-than-expected GDP numbers on Tuesday and only six days before the General Election, today’s UK PMI delivered less than positive news on the health of the manufacturing sector. Rates of expansion in production and order books both slowed sharply in April, meaning manufacturing is again unlikely to provide much of a boost to broader economic growth. This keeps the emphasis for maintaining the recovery highly reliant on the service sector. “
The incoming business growth slowed, led by a decrease in the volume of new work received from abroad. The sterling euro exchange rate was also hitting competitiveness. Moreover, the slowdown in the activity was largely due to the intermediate goods sector, which saw output and new orders fall back into contraction.
Manufacturing employment increased for the twenty-fourth successive month in April. Meanwhile, Price pressures remained on the downside in April. Average input prices declined for the eighth successive month during April, while the output prices decreased for the fourth straight month, with the rate of deflation the steepest since September 2009.
Rob Dobson, Senior Economist at survey compilers Markit, “Coming on the back of weaker-than-expected GDP numbers on Tuesday and only six days before the General Election, today’s UK PMI delivered less than positive news on the health of the manufacturing sector. Rates of expansion in production and order books both slowed sharply in April, meaning manufacturing is again unlikely to provide much of a boost to broader economic growth. This keeps the emphasis for maintaining the recovery highly reliant on the service sector. “