Manufacturing confidence surges with 51.3 PMI posting

CIPSnoble300UK manufacturing data has put “a spring in the step” of the sector with the Markit/CIPS Purchasing Manager’s Index (PMI) posting a14-month high of 51.3 in May.
Growth of output and new orders accelerated, leading to increased employment, and keeping the index ahead of the neutral 50.0 mark for the second month running.
May saw operating conditions improve at the fastest pace in over a year, reaching its highest reading since March 2012.
Growth registered by the consumer, intermediate and investment goods sectors. The strongest performance was seen at consumer goods producers. UK manufacturers generally linked higher output to improved new order inflows, successful new product launches and efforts to clear backlogs of work.
Rob Dobson, senior economist at survey compilers Markit, said the sector had a spring in its step’. Output was also likely to be raised further in the coming months, as firms refilled warehouses after stronger than expected demand has led to a sharp depletion in finished goods stocks, he added. The tentative return to job creation in the sector also suggested that manufacturers were becoming more confident in the outlook.
CIPS CEO David Noble (pictured) said: “Optimism abounds in the manufacturing sector”, adding that the industry, battered and bruised in the last 18 months, was still building from a low base but was now on a solid foundation which boded well for the future.

This material is protected by copyright Ken Hurst 2013.

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About Ken Hurst

Ken Hurst began his career as a journalist in London over 30 years ago, working on a range of publications before moving on to weekly newspaper production in the newly-independent Zambia of the 1970s. He returned to the UK where his work included spells on newspapers and magazines, before moving to head up Norwich Union’s corporate affairs division. In the 1990s he moved on to freelance, co-own and publish the B2B audio magazine Sound and front the BBC radio Yesterday’s Papers programme. There followed six years as Business Editor at Britain’s biggest selling regional daily newspaper, The Eastern Daily Press, where he led an award-winning team and for whom he still writes a weekly socio/political comment column. Subsequently, he was Group Editorial Director at CBM, responsible for its UK and US magazine output – including The Manufacturer magazine – research-driven industry reports and live events content. Currently he is Contributing Editor at Works Management magazine publisher Findlay Media and Chairman of the consumer publishing house TNT Multimedia Ltd. He is a Fellow of the Royal Society of Arts and of the British Association of Communicators in Business.
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