Fall reported in UK manufacturing PMI
03 August 2011
Posted by Michelle Devonshire
The UK's measure of manufacturing industry growth has shown a contraction for the first time in two years.
According to Markit and the Chartered Institute of Purchasing and Supply, which compile the monthly data, July saw output growth slow sharply.
The Purchasing Managers Index (PMI) for manufacturing fell over the month from 51.4 in June to 49.1, with figures above 50 indicative of expansion, although exports continued to perform well.
Strong performance in the beginning of this has declined in recent months and Rob Dobson, Senior Economist at Markit, has predicted: "With austerity arriving at home and debt ills rising in the US and euro area, significant headwinds are on the horizon."
His comments come after the PMI from Markit and JPMorgan for the global manufacturing industry demonstrated a slowing of growth during July 2011.
The UK measure saw a fall in domestic demand over the period in question and the first production job losses since March 2010.