By Max Clarke
Fresh doubts in the UK’s economic recovery have arisen after the latest manufacturing figures show growth has dipped to its lowest level since September 2009.
After a series of gains in late 2010/ early 2011, the manufacturing sector was seen by government and business organisations as the path to economic growth. This latest slowdown leads to fresh concerns about the broader UK recovery.
The recent near stagnation, as shown by the latest Markit/CIPS purchasing managers’ index figures , has in part been guided by a global economic slowdown negatively affecting exports.
The latest figure is quoted at 51.3- down from 52 in May. Whilst a slowdown is apparent, there is no contraction as an index of more than 50 indicates growth.
A cause for optimism, the PMI report suggests, can be found in the continued strong performance of capital goods- namely plant and machinery. Demand for such goods indicates that purchasers around the world are investing in the tools for growth, suggesting firms are anticipant of economic growth.
Join us on