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| Version 1 | Version 2 |
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| UK manufacturing sees surprise jump as orders rise | UK manufacturing sees surprise jump as orders rise |
| (35 minutes later) | |
| The downturn in UK manufacturing unexpectedly eased last month as domestic orders boosted output. | The downturn in UK manufacturing unexpectedly eased last month as domestic orders boosted output. |
| The closely-watched Markit/CIPS manufacturing purchasing managers' index rose to a four-month high of 49.5 in August from a downwardly revised 45.2 in July. | The closely-watched Markit/CIPS manufacturing purchasing managers' index rose to a four-month high of 49.5 in August from a downwardly revised 45.2 in July. |
| But since the figure is still below 50, the sector is still shrinking. | But since the figure is still below 50, the sector is still shrinking. |
| In contrast, figures for China and the eurozone showed manufacturing output shrinking again in August. | In contrast, figures for China and the eurozone showed manufacturing output shrinking again in August. |
| In the 17-country eurozone region, output was below the 50 mark for the 13th successive month, indicating continued contraction. | |
| In China, manufacturing activity fell to a nine-month low last month, adding to fears that its economy is slowing faster than estimated. | In China, manufacturing activity fell to a nine-month low last month, adding to fears that its economy is slowing faster than estimated. |
| In the UK, orders remained overall in decline, but saw their sharpest monthly jump since the survey began in 1992. | In the UK, orders remained overall in decline, but saw their sharpest monthly jump since the survey began in 1992. |
| "The marked easing in the rate of contraction at UK manufacturers is heartening," said Rob Dobson, economist at survey compiler Markit. | "The marked easing in the rate of contraction at UK manufacturers is heartening," said Rob Dobson, economist at survey compiler Markit. |
| However, Dobson said that current demand for goods was still too "lacklustre" to provide a sustained recovery in the sector. | However, Dobson said that current demand for goods was still too "lacklustre" to provide a sustained recovery in the sector. |
| A separate survey by manufacturing body EEF, looking at conditions over the past three months, found that trading conditions were the toughest since early 2010. | A separate survey by manufacturing body EEF, looking at conditions over the past three months, found that trading conditions were the toughest since early 2010. |
| It said slower demand for goods both in the UK and overseas had hit orders, with UK orders at their weakest level in over two years. | It said slower demand for goods both in the UK and overseas had hit orders, with UK orders at their weakest level in over two years. |
| The EEF said confidence in the sector was "draining away". It now expects manufacturing output to contract by 1.5% in 2012. | The EEF said confidence in the sector was "draining away". It now expects manufacturing output to contract by 1.5% in 2012. |
| However, it expects manufacturing output to rebound by 1.5% in 2013. | However, it expects manufacturing output to rebound by 1.5% in 2013. |
| EEF chief economist, Lee Hopley, said the sharp drop in export balances was a "particular concern", due to the UK economy's reliance on exports as a source of growth. | EEF chief economist, Lee Hopley, said the sharp drop in export balances was a "particular concern", due to the UK economy's reliance on exports as a source of growth. |
| "The risks of a more prolonged period of weak growth in global markets, which would continue to make economic rebalancing an uphill struggle, can't be ruled out," she added. | "The risks of a more prolonged period of weak growth in global markets, which would continue to make economic rebalancing an uphill struggle, can't be ruled out," she added. |
| Tom Lawton, head of manufacturing at business advisers BDO, which conducted the survey alongside the EEF, said the continuing turmoil in Europe was weighing on the sector. | Tom Lawton, head of manufacturing at business advisers BDO, which conducted the survey alongside the EEF, said the continuing turmoil in Europe was weighing on the sector. |
| However, he said it was positive news that manufacturers were continuing to invest. | However, he said it was positive news that manufacturers were continuing to invest. |
| "This indicates that manufacturers have learnt the mistakes of the past and are preparing themselves for an upturn in the market, whenever and wherever this may occur," he said. | "This indicates that manufacturers have learnt the mistakes of the past and are preparing themselves for an upturn in the market, whenever and wherever this may occur," he said. |