Exports increase prompts growth in UK manufacturing
1 Aug 2017
UK manufacturing was boosted last month thanks to improved export performance, according to the latest IHS Markit/CIPS UK Manufacturing purchasing managers’ index.
The index, released monthly, reveals UK manufacturing output rose from 54.2 in June to 55.1 in July. Any figure above 50 indicates growth.
July’s figures represent an acceleration in manufacturing operating conditions for the first time in three months, CIPS said.
According to CIPS, the consumer goods sector saw the strongest increase in output, followed by intermediate goods producers. What’s more, the ongoing upturns in output encouraged job creation in July, CIPS said, adding that staffing levels rose for the twelfth straight month.
Rob Dobson, director at IHS Markit, said: “UK manufacturing started the third quarter on a solid footing. The headline PMI signalled a growth acceleration for the first time in three months during July, as new order intakes were boosted by a near survey-record increase in new export business.
“Although the exchange rate remains a key driver of export growth, manufacturers also benefited from stronger economic growth in key markets in the euro area, North America and Asia-Pacific regions.”
Across the pond, however, manufacturing output fell in July, data suggests.
According to the Institute of Supply Management, activity in the US fell from 57.8 in June to 56.3 last month. The BBC said output had declined because of a “slowing demand for cars, which has left producers with large inventories, as well as a drop in drilling activity in the US energy industry”.
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