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UK manufacturing growth slows to 20 month low in May | |
(about 7 hours later) | |
The UK's manufacturing sector grew at its weakest pace in almost two years in May, a survey suggests. | The UK's manufacturing sector grew at its weakest pace in almost two years in May, a survey suggests. |
The Markit/CIPS UK manufacturing purchasing managers' index (PMI) fell to 52.1 last month from a downwardly-revised 54.4 in April. | The Markit/CIPS UK manufacturing purchasing managers' index (PMI) fell to 52.1 last month from a downwardly-revised 54.4 in April. |
Any reading above 50 indicates growth in the sector. | Any reading above 50 indicates growth in the sector. |
UK manufacturing has been one of the best performing sectors of the economy since the recession, but recent figures suggest growth is slowing. | UK manufacturing has been one of the best performing sectors of the economy since the recession, but recent figures suggest growth is slowing. |
"The UK PMI suggests that manufacturing has moved from rapid expansion to near stagnation," said Rob Dobson, senior economist at Markit. | "The UK PMI suggests that manufacturing has moved from rapid expansion to near stagnation," said Rob Dobson, senior economist at Markit. |
'Pretty poor' | 'Pretty poor' |
Although the PMI stayed above 50 for the 22nd consecutive month, May's reading of 52.1 is the lowest recorded since September 2009. | Although the PMI stayed above 50 for the 22nd consecutive month, May's reading of 52.1 is the lowest recorded since September 2009. |
Markit said production and new orders fell slightly for the first time since the middle of 2009. | Markit said production and new orders fell slightly for the first time since the middle of 2009. |
The consumer goods sector and smaller-scale manufacturers were hit hardest, it added. | The consumer goods sector and smaller-scale manufacturers were hit hardest, it added. |
Analysts said the data raised questions about growth in the wider economy. | Analysts said the data raised questions about growth in the wider economy. |
"The PMI was pretty poor. It does indicate that the economy is losing momentum," said Peter Dixon at Commerzbank. | "The PMI was pretty poor. It does indicate that the economy is losing momentum," said Peter Dixon at Commerzbank. |
On a brighter note, Markit said manufacturing staffing levels continued to rise while inflation in input costs had slowed. | On a brighter note, Markit said manufacturing staffing levels continued to rise while inflation in input costs had slowed. |
David Noble, chief executive of the Chartered Institute of Purchasing & Supply, which helps compile the survey, said growth in the sector may have bottomed out. | David Noble, chief executive of the Chartered Institute of Purchasing & Supply, which helps compile the survey, said growth in the sector may have bottomed out. |
"With the level of export orders still rising and the rate of inflation easing somewhat, we expect that May will come to be seen as an anomaly," he said. | "With the level of export orders still rising and the rate of inflation easing somewhat, we expect that May will come to be seen as an anomaly," he said. |
"However, the underlying trend is likely to remain one of slower growth compared with the start of the year." | "However, the underlying trend is likely to remain one of slower growth compared with the start of the year." |
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