UK Manufacturing Sector Continued To Expand In June
The UK manufacturing sector remained stable in June. The IHS Markit/CIPS UK Manufacturing Purchasing Managers' Index (PMI) rose to 54.4 in June from a downwardly revised 54.3 in May. The data exceeded economists’ forecast of 54.0. Still, the indicator was almost four points below the 51-month high reached in November 2017.
The growth of industrial production slowed, which largely compensated for the mild acceleration of the growth of new orders and improvement in the creation of new jobs. According to Rob Dobson, director of IHS Markit, the UK economy may be stuck in depression and will have to rely on other sectors if GDP growth in the second half of the year will meet expectations.
The better than expected manufacturing PMI will provide additional support for the hawkish members of the BoE’s committee. Bank of England officials weighing up the next rise in interest rates have been keen to emphasize the more positive numbers.