-UK Markit/CIPS May Manufacturing Index 45.9 Vs 50.2 In April
LONDON (MNI) – The UK manufacturing sector contracted sharply in
May, posting its worst peformance since the same month three years ago.
The headline Markit/Chartered Institute of Purchasing and Supply
index from Reuters fell to 45.9 in May, down from a revised 50.2 in
April, and well below both the 50 breakeven level and analysts’ median
forecast for a 49.5 outturn. The headline index’s 4.3-point fall on the
month was the second-steepest fall in the survey’s 20-year history,
Markit said.
“The UK manufacturing sector took a sudden sharp turn for the worse
in May. The PMI sank to a three-year low as firms cut production in
response to levels of new work nosediving,” Rob Dobson, senior economist
at Markit, said.
Dobson added the drop was not due solely to weak euro area demand
but also to the growing weakness of the UK domestic market.
The detailed data showed new orders fell at their fastest pace
since March 2009, with manufacturers cutting back output, employment,
purchasing and inventories.
With June economic activity set to be impacted by the extra holiday
for the Queen’s Jubilee, the data show manufacturing struggling to make
headway in the second quarter.
Policymakers have long hoped improved manufacturing activity would
help lead the way in rebalancing the UK economy, but the sector is now
contracting rather than expanding.
–London newsroom: +44 207 862 7491; email:drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$,MT$$$$]
