–UK May CIPS Manufacturing PMI 58.0; Unchanged Vs April – Reuters
LONDON (MNI) – UK manufacturing activity held steady in May, with
the headline activity index unchanged at 58.0, according to the latest
Markit/Chartered Institute of Purchasing and Supply survey, published by
Reuters.
The PMI activity index, at 58.0, matched April’s 15-year high, with
the survey showing increasing price pressures. Average purchase prices
rose at their fastest rate since August 2008, posting their ninth
consecutive monthly rise.
The activity data suggest manufacturing will make a strong
contribution to second quarter GDP.
“UK manufacturing maintained its blistering start to second
quarter. Although production remains well below pre-recession levels,
the sector is now recovering its losses at a surprisingly rapid pace.
The PMI suggests that output growth this quarter should at least match
the first quarter gain of 1.2% reported by the official figures,” Rob
Dobson, Senior Economist at Markit, said.
UK manufacturers are benefiting from the rebound in global economic
activity.
CIPS said increased demand from China, Europe, the US, the Middle
East and Africa contributed to a near-record increase in new export
orders.
Manufacturers’ stocks of finished goods were reduced at the fastest
rate since last October, implying the inventory cycle is supporting
activity.
Analysts at Capital Economics injected a note of caution.
They said CIPS data has generally been more optimistic than the
official data and noted industry makes up less than a fifth of the UK
economy.
Average purchasing costs increased at the fastest rate since August
2008. Companies reported higher prices for chemicals, fuels, metals,
packaging, paper and timber.
–London newsroom 0044 207 862 7491; email:drobinson@marketnews.com
[TOPICS: M$B$$$,M$BDS$,MT$$$$,MABDS$]
