On the first working day of the new year,a little bit of hope for the battered UK economy.
Figures out this morning from a survey of purchasing managers (PMI) show that activity across the British manufacturing sector continued to contract in December, but at a slower pace.
The index for the sector rose to 49.6 from a revised 47.7 in November whereas forecasts had put the PMI at 47.3.
A reading of less than 50 indicates a contraction in activity.
The figures were slightly above forecast with demand up in both Germany and China..
"It is encouraging to see output remain steady last month after the declines of recent months, but with the sector highly exposed to a shaky euro zone and reports of softening demand, ironing out economic problems in key export partners will be critical to how the sector performs," said David Noble, chief executive of the Chartered Institute of Purchasing and Supply.
Showing posts with label manufacturing. Show all posts
Showing posts with label manufacturing. Show all posts
Tuesday, 3 January 2012
Thursday, 1 December 2011
Manufacturing and output continues to fall in the UK
More bad news on the economy as manufacturing output has shrunk to its lowest level since June 2009.
November was the second successive month that output from Britain's factories fell with weak global demand being blamed.
Output also fell last month at the fastest pace in more than two years and new orders contracted for a fifth straight month although at a slower pace than in October.
The Markit/CIPS Manufacturing Purchasing Managers' Index (PMI) fell to 47.6 in November, its lowest level since June 2009, from an upwardly revised 47.8 in October.
The index, which was below the 50 mark that indicates growth in activity for a second month running, came in a touch above forecasts for a reading of 47.0.
Part of the reason is that manufacturers have been running down inventories to cut costs.These helped prop up economic growth in the third quarter and the running down will have a profound effect on growth in the fourth quarter.
November was the second successive month that output from Britain's factories fell with weak global demand being blamed.
Output also fell last month at the fastest pace in more than two years and new orders contracted for a fifth straight month although at a slower pace than in October.
The Markit/CIPS Manufacturing Purchasing Managers' Index (PMI) fell to 47.6 in November, its lowest level since June 2009, from an upwardly revised 47.8 in October.
The index, which was below the 50 mark that indicates growth in activity for a second month running, came in a touch above forecasts for a reading of 47.0.
Part of the reason is that manufacturers have been running down inventories to cut costs.These helped prop up economic growth in the third quarter and the running down will have a profound effect on growth in the fourth quarter.
Tuesday, 8 November 2011
A small green shoot?
Now some good news on the economy-well at least sort of.
September saw a slight increase in the country's manufacturing output,up 0.2 per cent on the previous month helping industrial production as a whole to post its strongest quarterly growth in over a year.
The figures come after a 0.3 percent decline in August, and slightly above economists' forecasts for a reading of 0.1 percent.
The main risers in the stats were transport equipment, basic metals and metal products and machinery and equipment.
The biggest falls were recorded in the food, drink and tobacco, computer, electronic and optical equipment
However less encouraging was that industrial production overall in September was unchanged from August,causes pointing at the door of maintenance at the country's gas and oil sector.
September saw a slight increase in the country's manufacturing output,up 0.2 per cent on the previous month helping industrial production as a whole to post its strongest quarterly growth in over a year.
The figures come after a 0.3 percent decline in August, and slightly above economists' forecasts for a reading of 0.1 percent.
The main risers in the stats were transport equipment, basic metals and metal products and machinery and equipment.
The biggest falls were recorded in the food, drink and tobacco, computer, electronic and optical equipment
However less encouraging was that industrial production overall in September was unchanged from August,causes pointing at the door of maintenance at the country's gas and oil sector.
Monday, 3 October 2011
Crumb of comfort for UK economy
Confounding some of the dire economic predictions,Britain's manufacturing sector has registered growth for the first time in three months.
CIPS Purchasing Managers Index (PMI), a measure of activity in the manufacturing sector, rose to 51.1 in September despite analysts predicting the lowest figure in two years.
It may be a small crumb of comfort for the government and may persuade the Bank of England to wait a little longer before approving a second dose of quantitative easing.
However before we all get too excited, over the third quarter as a whole, the PMI averaged 50.0, down from 52.7 in the second quarter and 59.4 in the first.
CIPS Purchasing Managers Index (PMI), a measure of activity in the manufacturing sector, rose to 51.1 in September despite analysts predicting the lowest figure in two years.
It may be a small crumb of comfort for the government and may persuade the Bank of England to wait a little longer before approving a second dose of quantitative easing.
However before we all get too excited, over the third quarter as a whole, the PMI averaged 50.0, down from 52.7 in the second quarter and 59.4 in the first.
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