PMI data ‘encouraging news’ for manufacturers

Posted on: 04.01.2010    18:47:04

New figures revealing that the monthly CIPS/Markit purchasing managers’ index (PMI) rose to 54.1 last month is encouraging news for UK manufacturers, according to one expert.

Rob Dobson, senior economist at Markit, said that the data illustrates that output will increase in the coming weeks and companies will have a greater demand for skilled staff.

“The outlook is somewhat clouded given the uncertainty of the timing of fiscal and monetary stimuli withdrawal but the momentum and broad base of the recovery should hopefully aid sustainability,” he explained.

Mr Dobson added that subdued export performance is currently preventing the industry from fully rebounding, but expressed his belief that the PMI data will continue to indicate recovery.

The expert’s comments come after new data issued by the EEF and accountancy firm BDO revealed that one in seven manufacturers who had moved their operations abroad have returned to the UK in the last two years over concerns about quality and rising freight costs.

 

Author: Chris Slay

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