Financial information services company Markit announced on Monday that the results of its latest Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) survey point to an encouraging trend in the UK manufacturing sector, which sustained a solid second quarter performance into June this year.
The Markit/CIPS UK Manufacturing PMI survey is based on monthly data received from purchasing executives in more than 600 industrial companies, which is seasonally adjusted. The June 2013 survey indicated that levels of production and new business in the UK has increased at the fastest rates since early 2011 and domestic market conditions have also appear to have been revitalised with strong demand from overseas.
Markit said any reading above 50 in the PMI survey indicates growth in the sector. For its June survey the reading was 52.5, the highest level since May 2011 and the third month in a row that the reading was above the neutral mark.
UK manufacturing production figures for sub-sectors covered by the survey all showed increases in June, with Textiles & Clothing and Food & Drink categories growing the strongest. Solid demand from domestic markets and clients based in Europe, China, North America, Scandinavia and the Middle East was also reported by manufacturers, along with a decline in costs for chemicals, feedstock, metals, packaging and plastics. Exchange rate factors were also said to have reduced the sterling price of certain imported inputs.
Senior economist at Markit, Rob Dobson, commented: “The UK manufacturing sector made positive strides on the recovery path during the second quarter of the year. June saw output and new order growth hit rates not seen since early-2011, as a brightening domestic market and resilient overseas demand led to a broad-based expansion across the sector.”