In Britain, manufacturing shows promise of growth

June 3, 2013 at 11:52 AM
share with facebook
share with twitter

LONDON, June 3 (UPI) -- Britain's manufacturing sector climbed from contraction to expansion in May, Markit Economics said Monday.

The headline business activity index, known as the Purchasing Managers Index, rose to a 14-month high as output and new orders both showed gains, the research firm said.

By numbers, the PMI rose to 51.3 in May from 49.8 in April.

The dividing line between contraction and growth is 50, so 51.3 shows a slight expansion in Britain's manufacturing sector for the month.

""The UK manufacturing sector had a spring in its step in May, as a brightening domestic market led

to faster growth of out put and new orders. One of the more positive features of the expansion is its

broad-base, with producers of consumer, intermediate and investment goods all reporting

stronger output growth. " said Markit economist Rob Dobson.

Dobson said output was likely to improve in the coming months, "as firms refill warehouses after strong than expected demand has led to a sharp depletion in finished goods stocks."

"The tentative return to job creation in the sector in May also suggests that manufacturers are becoming more confident in the outlook," he said.

Related UPI Stories
Trending Stories