Latest data released by Markit - 3 August 2020
The preliminary release can be found here. A slightly lower revision but nothing too major as output growth jumps to a 32-month high amid the reopening of the economy with domestic new orders rising.
However, the optimism is tempered with a continued fall in new export business as overseas demand continues to be subdued and that may limit the strength of the recovery. Adding to that is the extended drop in employment for a sixth straight month.
Markit notes that:
"The UK manufacturing sector started the third quarter on a much firmer footing, with output growth hitting a near three-year high and new orders rising for the first time in five months. The recovery strengthened as a loosening of lockdown restrictions allowed manufacturers to restart or raise production. July also saw signs of furloughed employees returning to work and customers resuming spending. Business optimism also rose to its highest for over two years as companies grew more hopeful that the future has brightened.
"Despite the solid start to the recovery, the road left to travel remains long and precarious. An extended period of growth is still needed to fully recoup the ground lost in recent months. This is also the case for the labour market, where job losses are continuing despite businesses reopening. There is a significant risk of further redundancies and of furloughed workers not returning unless demand and confidence stage more substantial and long-lasting rebounds in the months ahead."
