UK Manufacturing 14 Month Growth Low

UK Manufacturing 14 Month Growth Low.

The Markit/CIPS Manufacturing Purchasing Managers Index (PMI) and the EEF trade body have both reported a slowdown of growth in the manufacturing sector. Both new orders and output have increased but at a slower rate than before.

The PMI report did show that the sector still grew as any result over 50 is growth. The sector grew 52.5 in August down 54.8 in July, this was the lowest result in 14 months.

Foreign demand for UK manufactured goods increased for the seventeenth month in a row. However the rate of increase for these orders was the lowest since March. More job creation was also seen to continue for the sixteenth month in a row.

Rob Dobson a Senior Economist said “It therefore looks as if manufacturing will provide a lesser contribution to the UK economic growth story in the third quarter than at the start of the year.”