UK manufacturing growth at 14-month low, PMI survey finds
Growth in the manufacturing sector has slowed, with both new orders and output increasing less rapidly than before, two surveys have suggested.
The Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) edged down in August to 52.5 from 54.8 in July, its lowest reading for 14 months.
A PMI figure over 50 indicates expansion.
A separate survey from the EEF trade body, conducted between 30 July and 20 August, also found growth had slowed.
Markit said the slowdown was broad based with new jobs, export orders and new business all weakening.
The slowdown meant the sector would provide a smaller boost to the UK’s overall rate of growth this year.
The EEF said that, because of the recent slowdown, it now expected the manufacturing sector to grow by 3.3% in 2014, down from its previous forecast of 3.5%.
“UK manufacturing cannot insulate itself from global market conditions and this is clearly shown in the dip in output,” said Tom Lawton, head of manufacturing at accountancy firm BDO, which helped with the EEF survey.
Jeremy Cook, chief economist at the currency exchange company, World First, said the surveys pointed to a “broad slowdown” in the sector.
Apparently the “finest days” of the “recovery” are over.