–UK Apr CIPS Manufacturing PMI 54.6: Down From 56.7 In March – Markit
LONDON (MNI) – UK manufacturing grew at its slowest pace in seven
months in April although output price inflation was at near record
highs, according to the latest Markit/Chartered Institute of Purchasing
and Supply survey, published by Reuters.
The data, the first of the CIPS series for Q2, will reinforce
fears of a tepid economic recovery accompanied by resilient inflation.
The CIPS/Markit survey showed the headline PMI activity index, at 54.6,
was markedly below the downwardly revised 56.7 reading for March.
Output price inflation was reported to be only marginally below the
series’ high hit in March.
The manufacturing sector has been expanding more rapidly than
services, but this survey suggests that recovery is cooling. Domestic
demand had cooled, leaving manufacturing reliant on export growth,
according to Markit.
“The manufacturing growth spurt looks to be fading rapidly.
Although output growth was still expanding at an above long-term average
clip, and solid job creation continued, the sector cooled further in
April from the near record pace of expansion seen at the turn of the
year,” Rob Dobson, senior economist at Markit said.
Dobson added that “new orders growth having collapsed from a
booming pace at the start of the year to only register a weak influx of
new business in April. Manufacturers reported that the domestic market
has weakened considerably in recent months, with consumer demand in
particular shifting into reverse gear.”
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