UK manufacturing beats analyst outlook for August

The latest Purchasing Managers’ Indices (PMIs) show UK manufacturing experiencing a ‘bounce’ in August, according to the report’s authors at market analyst consultancy Markit.

The company said August’s figures jumped from 45.2 in July to 49.5. However, any figure below 50 represents a contraction.

Rob Dobson, senior economist at Markit, said: “Having followed such marked declines in July, the August readings for production and new orders do little to change the underlying picture of a fragile sector facing enormous headwinds.

“Overall demand remains too lacklustre to provide an imminent and sustained recovery, with investment spending still weak and domestic austerity ongoing. Long unsatisfied hopes that the manufacturing sector could export its way back to health also remained jilted by the marrying of a downturn in our largest export market to the onset of softer global economic growth,” he added.

“The performance of the sector is therefore likely to remain subdued and volatile until underlying structural imbalances are resolved.”

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