UK manufacturing recovery continues in May

[easynow]

UK factory output is continuing to enjoy one of its strongest growth periods for 22 years, a survey has suggested.

Manufacturers raised production in May to meet strong demand, according to research firm Markit.

Growth continued at almost the same rate seen in April, matching economists' expectations.

The Markit/CIPS UK Manufacturing Purchasing Managers' Index (PMI) edged down slightly in May to 57.0 from 57.3.

However, growth stayed well ahead of a reading of 50, the dividing line between growth and contraction, after strong demand from domestic and export markets.

'Real positives'
The PMI has indicated that the manufacturing sector has grown every month since March last year.

Consumer goods, machinery and equipment all saw marked expansions of new orders and output.

Markit also said that in May the wider UK economy benefitted from manufacturers taking on more staff.

"Sustaining the rebound and continuing to push towards rebalancing the UK economy towards manufacturing therefore remains critical. On those scores the latest survey provides some real positives," said Rob Dobson, senior economist at Markit



http://www.bbc.co.uk/news/business-27663851

 

[easynow]

Where's all the guardian readers and UKIP lovers at? lol

 

[Rod Marsh]

Great news. Economy grows we all benefit.

 

[London Irish]

Uk manufacturing was growing when the Tory coalition took took charge, then slumped after Osborne's March 2011 budget, and has recently been growing again. It's like Bournemouth claiming they should be in the Premiership now because they won a few games in March and April.

 

[Pavilionaire]

Uk manufacturing was growing when the Tory coalition took took charge.

What, like the way you get a slight bounce when you drop a dead cat from a great height?

I shudder to think what might have happened if Milliband and Balls had been in charge, I really do.

 

[Vegas Seagull]

What, like the way you get a slight bounce when you drop a dead cat from a great height?

I shudder to think what might have happened if Milliband and Balls had been in charge, I really do.

Don't mock, Mr stats still thinks it's called the premiership

 

[London Irish]

Don't mock, Mr stats still thinks it's called the premiership

ha, it's Mr Pedant calling Mr Stats a black kettle

 

[PILTDOWN MAN]

Uk manufacturing was growing when the Tory coalition took took charge, then slumped after Osborne's March 2011 budget, and has recently been growing again. It's like Bournemouth claiming they should be in the Premiership now because they won a few games in March and April.

Interesting stupid but nonetheless interesting

 

[RexCathedra]

Catch-up growth is always impressive. Look at, e.g., China's GDP figures.

The real question is, catching up from what, and why do you need to catch up in the first place?

 

[knocky1]

UK manufacturing is 10% of UK economy. Factory production is 7.5% lower than 2007. Interesting from this Chartered Institute of Purchasing and Supply Report.

 

[beorhthelm]

It's like Bournemouth claiming they should be in the Premiership now because they won a few games in March and April.

its more like, we are and always have been in the Premiership, but all the bedwetters compare us to a bygone age and cant accept we're midtable rather than at the top, and think results are dependant on the squad size

 

[Buzzer]

Uk manufacturing was growing when the Tory coalition took took charge, then slumped after Osborne's March 2011 budget, and has recently been growing again. It's like Bournemouth claiming they should be in the Premiership now because they won a few games in March and April.

The entire continent of Europe slumped in 2011 with both the Eurozone and UK hitting as low as 45 in the manufacturing industry. 2011 was a particularly low point in the economic cycle globally. One would have thought that if Osborne had got it so wrong in the 2011 budget that Britain would have continued to slump or at the very most have only modest rises since. Britain is easily outperforming the Eurozone and I notice that Markit also report a 20 year high in contractor charges in the construction industry whilst in the service industry, employers are taking on staff at the joint highest rate since May 1997.

I'd be interested to see how your analogy extends to these stats.

 

[Buzzer]

UK manufacturing is 10% of UK economy. Factory production is 7.5% lower than 2007. Interesting from this Chartered Institute of Purchasing and Supply Report.

Construction is now at a PMI of 60 as opposed to 55 in 2007 (9% increase) and the service industry which is the bulk of our economy is nearly at 59 from 52 in 2007 (13% increase).

That CIPS report also says that exports rose for the 14th consecutive month and manufacturing employment increased for the 13th consecutive month and these figures are across the whole spectrum from SMEs up to the big corporates. This from the Chief Exec of CIPS on the report:

“British manufacturers march onwards to mirror last month’s strong performance. Growth of new business and export orders remained strong in May, and firms are ramping up production to meet this demand. As a result, and in line with robust economic conditions, it can be said, that we’re starting to see real evidence of a sustained recovery for the sector."

All sounds very positive.

 

[spongy]

What recession? I started my job in manufacturing in 2010, the company was extremely busy then and we've been getting busier and busier ever since. Even investing in new machines and having to run 24/5 to keep up with it all!

I don't really mean this when I say it but sometimes I wished there was another dip so I don't have to keep working 12 hours a day. It makes any social life non existent during the week and I don't get to spend as much time her her indoors as I'd like.

Better to busy than stratching around for it though.

 

[LlcoolJ]

When will people realise that what politicians do has very little bearing on the economy. The economy is global and is mainly affected by events around the world rather than domestic economic policy (which is mostly political tinkering).

Just as Labour had nothing to do with the American subprime market, Osborne has nothing to do with the totally natural recovery from a global financial crisis.

And it would have been exactly the same had a Conservative government been in charge in 2007 and we now had Balls claiming credit for the movement back to normality (as he would have).

I'm no supporter of either party. Just pointing out how ridiculous it is to argue about such things as if it's our politicians who have control over them.

 

[melias shoes]

Uk manufacturing was growing when the Tory coalition took took charge

Yeah right.

 

[PILTDOWN MAN]

When will people realise that what politicians do has very little bearing on the economy. The economy is global and is mainly affected by events around the world rather than domestic economic policy (which is mostly political tinkering).

Just as Labour had nothing to do with the American subprime market, Osborne has nothing to do with the totally natural recovery from a global financial crisis.

And it would have been exactly the same had a Conservative government been in charge in 2007 and we now had Balls claiming credit for the movement back to normality (as he would have).

I'm no supporter of either party. Just pointing out how ridiculous it is to argue about such things as if it's our politicians who have control over them.

All ok apart from the UK is outperforming nearly everyone. That is a result of political intervention. Labour have lost the argument with the economy and have diverted it to the feelgood factor. They'll lose that as well.

 

[knocky1]

Construction is now at a PMI of 60 as opposed to 55 in 2007 (9% increase) and the service industry which is the bulk of our economy is nearly at 59 from 52 in 2007 (13% increase).

That CIPS report also says that exports rose for the 14th consecutive month and manufacturing employment increased for the 13th consecutive month and these figures are across the whole spectrum from SMEs up to the big corporates. This from the Chief Exec of CIPS on the report:

“British manufacturers march onwards to mirror last month’s strong performance. Growth of new business and export orders remained strong in May, and firms are ramping up production to meet this demand. As a result, and in line with robust economic conditions, it can be said, that we’re starting to see real evidence of a sustained recovery for the sector."

All sounds very positive.

You must be reading a different report. Construction? A PMI of 60? Manufacturing not 7.5% below pre crisis levels?

Still I agree your and my reports are not negative. we must bear in mind the states have just dropped back on growth this month.

 

[Buzzer]

You must be reading a different report. Construction? A PMI of 60? Manufacturing not 7.5% below pre crisis levels?

Still I agree your and my reports are not negative. we must bear in mind the states have just dropped back on growth this month.

I'm looking not only at their manufacturing but also their construction and service industry reports. Apologies for the confusion.

http://www.markiteconomics.com/Survey/PressRelease.mvc/40dc34e649d64e839295454b2d7f4b9d

http://www.markiteconomics.com/Survey/PressRelease.mvc/9f094c86cf5944d081db5a32c18cdf30

 

[maltaseagull]

When will people realise that what politicians do has very little bearing on the economy. The economy is global and is mainly affected by events around the world rather than domestic economic policy (which is mostly political tinkering).

Just as Labour had nothing to do with the American subprime market, Osborne has nothing to do with the totally natural recovery from a global financial crisis.

And it would have been exactly the same had a Conservative government been in charge in 2007 and we now had Balls claiming credit for the movement back to normality (as he would have).

I'm no supporter of either party. Just pointing out how ridiculous it is to argue about such things as if it's our politicians who have control over them.

Agree completely with the concept but there are so many blinkered posters on here who are an absolute joke. It's either everything Labour do is wonderful and the Tories are idiots or vice versa. A coalition of all parties is my preference where part loyalty comes after what's best for the country.