UK Manufacturing Sector Sees Growth Accelerate In July: CIPS

-IHS Markit/CIPS PMI rises to 55.1 in July from 54.2 in June

By David Robinson

     LONDON (MNI) - The UK manufacturing saw accelerated growth at the start of

the third quarter, with the IHS Markit/CIPS Purchasing Managers' Index climbing

to 55.1 in July from 54.2 in June.

     This was the first monthly rise in the manufacturing PMI index in three

months. Official data showed manufacturing performed poorly in the second

quarter, falling 0.5% compared to the first quarter with overall Q2 quarterly

growth only 0.3% but the outlook for the sector in Q3 looks rosier.

     The July PMI was underpinned by a pick-up in new work, production and a

slight rise in manufacturing employment with export order growth particularly

strong. While new orders rose, the pace of growth was still close to 12 month

lows.

     New export business, however, posted its second strongest growth in the

history of the PMI manufacturing series.

     "The headline PMI signalled a growth acceleration for the first time in

three months during July, as new order intakes were boosted by a near

survey-record increase in new export business. Although the exchange rate

remains a key driver of export growth, manufacturers also benefitted from

stronger economic growth in key markets in the euro area, North America and

Asia-Pacific regions," Rob Dobson, Director at IHS Markit, said.  

     The PMI survey found evidence of easing pipeline inflation pressure, with

input prices rising at their slowest pace in over a year. 

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com

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